Thanksgiving Weekend Portfolio Analysis (November 28, 2015)

The abbreviated trading week was relatively quiet except for a brief increase in volatility early on Tuesday after news surfaced that a Russian fighter jet had been shot down by the Turkish military. However, stocks quickly recovered by the end of the day. The market has struggled to continue the rally that began on November…

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Weekend Portfolio Analysis (November 21, 2015)

Market Conditions Despite last week’s terror attacks in Paris, the financial markets were unaffected. The week of November 16th was the strongest of the year for the S&P 500 with the index closing just 41.65 points below its all-time high. Much of this week’s strength can be attributed to perceived certainty that the Federal Reserve…

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Weekend Portfolio Analysis (November 14, 2015)

Market Conditions The S&P 500 is once again in the red for the year. The markets declined for most of the week giving back a large chunk of the gains from the previous six weeks. This week’s decline was the largest in twelve weeks as the S&P 500 fell below its 200-day moving average. Helping…

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The Kelly Criterion – A Game Changer

Successful options trading is based on understanding the statistical probabilities and using those probabilities to create an “edge”.  The Kelly Criterion is one method that traders use to determine the appropriate position sizing for a given trade. The underlying principle is that you should not put all of your money into a single trade, but…

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Weekend Portfolio Analysis (November 7, 2015)

Market Conditions Liftoff! A surprisingly strong non-farm payrolls report (271,000 actual vs. 180,000 expected) on Friday pushed stocks down slightly, while boosting the U.S. dollar and hammering precious metals and bonds. The unemployment rate fell to 5.0%, the lowest since April 2008. Average hourly earnings rose by 0.4% from September and were 2.5% higher than…

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