WFC Option Traders Go Bear as Bidless Beast Appears
If you were following the market into the close, things didn’t exactly go that smoothly for the bulls as the "bidless beast" appeared and the S&P tested new lows. Prior to the sell-off, Wells Fargo & Co (NYSE: WFC) saw a large option trade appear that put in it’s top about 30 minutes before the…
Bitcoin Taproot is Live & Here’s What You Should Know
The activation of Bitcoin's Taproot upgrade went live this week. The update comes just as it appeared that Ethereum was about to overtake Bitcoin. Taproot represents the largest update in four years and sets the stage for Bitcoin smart contracts. The upgrade is a big deal for Bitcoin and may maintain its preeminence in the…
Candlestick Patterns 101: Separating Lines (Bullish)
Yesterday, I posted on the bearish version of the Separating Lines pattern. Today, it’s just for the bulls! Separating Lines (Bullish) Basics The concept is simple for the Separating Lines pattern. The bears take control for a day within a bullish trend, put up a longer marubozu candle, and the bulls take charge the next…
Candlestick Patterns 101: Separating Lines (Bearish)
Often times when price reaches an inflection point, there is a degree of balance that is exhibited in the price. However, that is not the case with the Separating Lines candle pattern. In this bearish case, the price is reaching a euphoric peak before quickly falling into the valley. This sharp reversal is a quick…
Candlestick Patterns 101: Meeting Lines (Bullish)
What do you think of when you look at the opening gap and rally today in Apple Inc (NASDAQ: AAPL)? My first thought was Meeting Lines. If you said something different, you of course would be wrong! All kidding aside, the pattern today was really interesting and instructive as a bullish reversal pattern. Let’s take…
Options Market Finds EVs as Infrastructure Vote Looms
The last few days has been a feeding frenzy in the options market as a potential infrastructure vote appeared to be close. It’s not hard to work downstream from this spending behemoth to identify who might be a beneficiary of the passage of the policy. Clearly the options market on Thursday decided to pull the…
Candlestick Patterns 101: Belt Hold (Bullish)
Sometimes the price can quickly reach an extreme after an opening gap lower. With Bullish Belt Hold patterns, the bears are quickly exhausted, and the price begins to advance to close near the high of the period. The ability to stage a significant intraday reversal higher is a strong tell that the bulls are now…
Candlestick Patterns 101: Rising Window
Since we’re in the midst of earnings season, many companies announce either after the market closes or before the market opens. As a result, the opening price may be disconnected from the rest of the chart. The failure to overlap trading ranges is called a gap or window. Window’s can give you an indication of…
Candlestick Patterns 101: Three White Soldiers
Is there a more bullish sounding name than three white soldiers? Now, with modern charting packages, you can make your soldiers whatever color you want, but the point is that the real body is hollow, thus taking on the background color of your chart. With the price opening lower and ending higher, it demonstrative of…
Stagflation, It’s More Than a ‘High Class Problem’
Inflation is becoming increasingly felt by consumers as prices have been rising at or near historic rates. As a result, the term stagflation is becoming part of the public discourse. Of course, former Obama administration economist, Jason Furman, took some heat for tweeting that current inflationary conditions are a “high class problem.” That has put…