Trading Strategies

Analysts are WRONG About 2023 Earnings

Jerome Powell is trying to be clear, and traders have their heads in the sand. The Federal Reserve chairman used the word “pain” eight times in last week’s press conference. He reminded everyone that: Higher interest rates, slower growth, and a softening labor market are all painful for the public that we serve. But they’re…

“Trickle-Up Pain” Is Coming to the Stock Market

Inflation has always been a problem. It’s just usually a quieter problem. For most of the past decade, inflation has been at 2% or lower. Barely enough to notice it. Consumers were blissfully unaware about inflation or how it worked. These days, it’s a universal talking point. With the Consumer Price Index persistently above 8%,…

A Peek Behind the Market Maker’s Shoulder

Many traders make a dangerous assumption about options contracts. Because they’re derivatives of stock prices, a lot of people think options are priced “automatically” based on how the stock price is moving. This just isn’t the case. There are tons of factors that can lead to options mispricing – typically the kind of mispricing that…

Does This Line Signal a 16-Year Bear Market?

Rarely will you see me give any real credence to any fundamental market metric. Company P/E ratios, earnings per share, free cash flow… These just don’t factor in to my trading style. I’m far more interested in where the money’s moving in the short term, and none of those stats can tell me that. But…

Batter Up! Kings 1, Market 0

Trading the market is a lot like being the manager of a baseball team. Hear me out… First off, both trading and baseball is a marathon – not a sprint. As traders, we can’t let one single trade made or break us. We need to compound winner after winner, all the while making more on…

Something Different, but Worth Watching

Over the last few years, the way people think about investing has changed radically. Before the pandemic, people talked about companies. I’d hear things like, “I always see customers in EZPawn. Their stock must be doing great.” Or “The new Call of Duty is coming out soon. Is Activision a buy?” The conversations almost always…

Making Swiss Cheese Out of Economist Ideas

I’ve read a lot of books on the markets. Most won’t teach you anything you don’t already know. A rare few hold insights you’ll never forget. And some books are so wrong, they unintentionally lead you to an opposite strategy that actually works well. Among this last group is Burton Malkiel’s A Random Walk Down Wall…

Click Away, Kings

Hey Kings, Bryan Klindworth, my right-hand man, said something in his noon coaching session today that I’d like to touch on… He said, “Every headline you see, no matter which website it comes from, is designed to do one thing, and one thing only: Get you to CLICK!” Now, Bryan was referring to geopolitical headlines,…

How I Countertraded the Dot-Com Bubble

I like to give Warren Buffett a hard time. He says “buy fear.” I say “buy greed”… He says “buy companies on sale.” I point out nobody has the access he does to figure out what’s a sale and what’s a trap. But there’s one thing I can’t knock Buffett for: His integrity in the face…

Trade Room 2.0

One of the biggest developments we’ve been working on at Trade Kings is our very own, state of the art Trade Room. I wrote you last month when we first unveiled it, covering a few of the new features I was most excited about. But even more exciting… We recently released version 2.0. We looked at all…