Trading Strategies

This Big Money Trader Just Pocketed 1,000% in 2 Weeks. Did You?

Something just occurred to me. Every Monday, we run through some of the previous week’s boldest Big Money trades… But what we don’t cover enough of is why. Why do we follow these trades from week to week? Well, looking back through some of the trades we’ve featured, the answer is clear… There is major money…

Economists Are Dead Wrong on Slower Inflation

Finally, some good news. Inflation has dropped… a little. In April, the Consumer Price Index (CPI) rose 8.3% compared to a year ago. That’s not “good” necessarily — but it’s not as bad as March, when CPI rose 8.5%. As a consumer, even a slightly lower number is welcome. And some analysts expect inflation to…

Most Investors Look at Fear All Wrong. Do You?

Mike wrote to you yesterday with a bold claim: Every bubble in the entirety of human history has started with greed. I’ll see that claim, and raise another… All bubbles end when investors give in to fear. There have been dozens, maybe even hundreds of bubbles since the Dutch first traded tulips about 400 years ago….

Hitting Stocks With a Blunt Tool

“Uncle … UNCLE!” As the father of two young boys, I often hear those words hollered when one has the other pinned. The stock market is screaming a similar phrase right now as Federal Reserve Chairman Jerome Powell puts equities in a chokehold. But he’s not letting up. Last week, the Fed hiked short-term rates…

This “Greed Gauge” Saved You from the April Sell-Off

Every child is afraid of something. The dark, spiders, or clowns are all common fears… Or they may even have less rational fears, like dolls, cartoon characters, or ghosts. However, I’ve never met a child who was afraid of bubbles. That fear tends to develop later in life — usually among traders who have suffered…

The Big Money’s $45M Flip-Flop

The stock market is drunk. I sent that message to my editor, Melody, as stocks tanked on Thursday. This came off a strong rally on Wednesday after the Federal Reserve hiked interest rates as expected. I was looking for that momentum to carry us the rest of the week. That’s why we held our short-term…

Use This Simple Tool to Time the Next Market Bottom

It’s normal to feel nervous in a market like this… After all, the S&P 500 has fallen 13.35% since the start of the year. We’re in correction territory — a decline of at least 10%. And it has many people wondering if a bear market lies ahead. But just because these fears are normal, doesn’t…

Anatomy of a Flash Crash

Anatomy of a Flash Crash

On Monday, May 2, a computer-driven “Flash Crash” wiped out $315 billion from the Stockholm Stock Exchange in just five minutes. And 12 years earlier, in this same week, the first infamous Flash Crash struck the New York Stock Exchange and drove stocks down 1,000 points in just 10 minutes. But how do they work?…

Boeing Is Down 65% in 3 Years. Can It Recover?

“Thoughts on Boeing? In this market, thinking puts lol” This is the type of text message I get from my brother throughout the day. This one was back on April 22, and I knew what he was looking at… Boeing had earnings the upcoming Wednesday — and he loves to gamble on a possible big…

Thanks to “G. Weiss,” I’m Writing You Today

When I walked across the stage to accept the Charles H. Dow Award, it didn’t occur to me that I was one of the first women in history to do so. I was in New York City, accepting the 2015 award for a paper I wrote the year before. Today, I am still just one…