Just people grasping for reasons to trade or reposition. This week just confirms it. Are the people who sold on Friday and Monday the same people who bought the rest of the week?

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Thanks! At this point I'm still very much in education mode. At some point I intend to set up a trade account to play with and want to understand more trading strategies than buy and sell.

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Hondo, you can set up an acccout with T.D. Ameritrade and paper trade, then fund it when you feel ready to trade for real. They also have lots of educational articles amd videos.

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Interesting approach Gator. I primarily take covered call strategy only once gains are at a point where I'm looking to juice my net gains. I would rarely immediately sell a call against an entry.

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I really thought the 38% drop was way too much of an overreaction.

Also, the calls were offering a good addition to the trade by selling at ~80% implied volatility.

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I mentioned this earlier, but will detail the trade because it is very close to the example OA1 is trying to explain.

After the BRExit drop I was pretty amazed that Barclays dropped 38% in two days. Sure when (if) the exit happens they'll lose business, but that's not going to happen for quite some time.

I purchased 1400 shares of BCS for 7.34 (this was two trades so this number might not be exactly correct).

I then sold 14 covered calls for July 16 at a strike price of 8 for 0.25. This means I collected a premium of $350 (minus fees). As long as BCS stays below 8 by the time these options expire I'll make a 3.5% return for the month plus whatever gain/loss I make on the stock itself.

If BCS climbs up over 8 and my options are exercised then I'll make 12.4% for the month (0.66 stock increase plus 0.25 premium on a 7.34 stock purchase). These options are priced extremely high right now. Typically you'll make about 0.5% per month selling 1 standard deviation OTM calls on markets and highly traded stocks.

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I bought 1,000 shares of BCS at just under 7.2 the other day. Now I don't really know what to do next. I know it's not guaranteed, but I'd rather put something in where it's a safe bet that I keep most of those stocks since I bought in so low. You guys seems to be able to keep most of your shares.

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You've got some options (see what I did there?).

Right now, July 16 Calls at a strike price of 8 are $0.45. Owning 1000 shares you can sell 10 calls and collect $450. Right now the 9 calls are virtually worthless; so you're stuck with the 8 calls even though there is an even chance they get exercised. You can sell 10 covered calls and collect your $450 in premiums giving you a 6.25% return for the month. IF the stock climbs to above 8 by the time your options expire that means that you'll possibly sell your 1000 shares at 8. This makes your maximum return 17.4% for the month.

Another option would be selling Aug 16 Calls at 9 for $0.25. There is definitely less of a chance of that getting exercised and you are compensated less because of it.

I'm pretty happy with 17% being my topside for a monthly return. You can always buy the stock back, rinse, and repeat even if they get exercised.

Of course, financials could also tank, and are prob the most susceptible to do so right now.

Agree it'll break above 18k. The Brexit event showed a resilient support level.

With the new drone legislation getting through a few days ago, what are yall's thoughts on drone stocks? I think the industry has huge potential here over the next few years. New to investing as I just graduated and interested in learning as much as I can not just about the drone market, but trading in general

Thanks for the referral! I'll check it out!

Productivity growth is at a crawl, business investments growth rate is negative (first time since 08-09), industrial production shrinking (first time once 08-09), currency trading extremely volatile, PEs well above median over past 3 decades, political unrest in most every mature market, markets in same pattern as have been in past year, bond yields at historic lows, and from technicals - weekly 100 MA crosses the 50 for first time since 08-09.

Equity valuations are quite elevated, but the search for yield and central bank support keeps pushing things higher.

Any somewhat significant event shakes these markets to the foundation and the risk is lower, a lot lower. The risk associated with the upcoming presedential election adds uncertainty. The delay of and fallout of Brexit adds uncertainty.

The reactionary buying after BRExit is overextended, people are getting used to V bottoms, buys have continued to disappear around 2100, divergences are abound each time we reach these levels...and all that sets up for a volatile and fragile market that is overpriced and sustained basically only by central banks. NO ONE is talking about China right now either.

Gold and silver miners are roaring and for great resons. Politicians worldwide are spending their countries into oblivion and printing money like fools to make up for horrible policies and to keep the Ponzi schemes going just a little longer. Paper currencies around the world are racing to zero but gold and silver can't be printed!

With zero interest rates (negative in some countries), there is no opportunity lost by owning the metals or the miners. And many aren't going to buy bonds with the 10 year yielding 1.5%. Sheesh!

Look at the charts on any of the miners. They are extremely bullish!

The bond and gold trade is a risk off sign, but the buying is everywhere right now. Currency manipulation.

1.39% on the 10 year

The VIX came close to $14 again last week and is now over $16 in pre-market.

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Gold and silver miners are roaring and for great resons. Politicians worldwide are spending their countries into oblivion and printing money like fools to make up for horrible policies and to keep the Ponzi schemes going just a little longer. Paper currencies around the world are racing to zero but gold and silver can't be printed!

With zero interest rates (negative in some countries), there is no opportunity lost by owning the metals or the miners. And many aren't going to buy bonds with the 10 year yielding 1.5%. Sheesh!

Look at the charts on any of the miners. They are extremely bullish!

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Printing money doesn't necessarily mean that money will flow into things like gold. Countries had massive debt and were printing money over the last five years but gold is down 10% over that time period. I'm fine with it being a part of most portfolios but the people that went all in on metals five years ago have to be kicking themselves.

I didn't recommend going all in on gold/silver. As a matter of fact I never recommend going all in on any investment.

You are certainly right that gold is down over the last 5 years. It's also up from its 1971 price of $30/oz (when I made my first gold purchase) and also up from its 2001 price of $230/oz.

How would you go about buying gold right now? Actually buying the physical currency?

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How would you go about buying gold right now? Actually buying the physical currency?

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I own the gold and silver miners primarily. You can buy ETF's like GDX (gold miners) GDXJ (Jr gold miners), SIL (silver miners). Some of the better quality miners are Randgold (GOLD, Jim Cramer's favorite), Goldcorp (GG), American Barrick (ABX), Agnico Eagle Mines (AEM). Miners with higher silver revenues are Hecla (HL), First Majestic (AG), Pan American Silver (PAAS, one I particularly like).

Soros bought American Barrick and Silver Wheaten (SLW).

This is mainly a technical analysis thread. But if you you look at any of their charts they all look very similar to me.... Going up! Their bullish trends clearly resumed in February.

Wedged out at the top yet again as buyers disappeared. The bear case continues to grow.

So you're saying it's a coin flip now on if this is a bear or bull? Just making sure I read you correctly. Tia

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So you're saying it's a coin flip now on if this is a bear or bull? Just making sure I read you correctly. Tia

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YESSIR. 50-50 with 18k being the pivot point on the bull side and 16950 on the bear side.

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Bond markets around the world are screaming deflation and recession yet the stock markets continue higher. The U.S. is trying to play catch up with Germany and Japan with our 10-year now at 1.36%. I predict this goes below 1% soon. It is a long-held belief in the markets that the bond market is smarter than the stock market. Something has to give soon in one of these markets.

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is it possible that the US bond market is predicting low growth and inflation?

I have long heard what you have heard about bond guys being smarter. I have never looked at their predictions, but would wonder if they were right when they were predicting good growth and inflation back in '99 if you use yields as an indicator of those predictions.

British Pound breaks $1.30 down to $1.2946

I'm not crazy right, the bond market is signalling a huge correction.

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I'm not crazy right, the bond market is signalling a huge correction.

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I think the bond market is signaling future ghost QE which will make long term yields trash. Why by a 20 year bond when countries are going to increase their money supply 5x by maturity?

Just a theory of mine.

Factset analysis John Butters projects a 5.3% decline in Q2 earnings year over year for the S&P 500. If Butters is correct that would make 5 consecutive quarters of declining earnings.

Declining S&P earnings, stock market highs, historically low bond yields and stock leadership groups like the gold and silver miners makes an old invester like me get the hebadee geebadies. I am keeping a 20% cash reserve. Add in all the political uncertainty both here and abroad. Whew!
I added to my gold and silver miners yesterday. I just don't think central bankers will allow an extremely deep recession without printing money hand over fist.

Just remember the old saying:

"The stock market takes the stairs going up and the elevator going down".

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Just circling back around.....

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Hey Donald Draper. Since you exited the market at 18k and this guy thought he was being smart I'll quote his post for you now with an obligatory "just circling back around".

Markets in sideways "no mans land" still. I'd stay 401k flat and trader with any recent shorts taking some profits off the table again when DOW hits 100+ down after opening bell.

Just continue with the disciplines and enjoy.

Dow -118 is right on daily convergence reading. There is your short cover for half mark.

Also, i do not day trade (have i made that clear yet?) but that -118 convergence mark is where pro day traders enter long positions with a tight stop.

http://www.bloomberg.com/news/articles/2016-07-06/the-30-year-u-s-treasury-hit-a-milestone-it-hasn-t-seen-since-the-financial-crisis

See how that bounce worked? Day traders would be taking profits here at -20 DOW.

Talking to a couple of foreign clients on potential next domino Italy banks. Crisis potential everywhere so be prudent!