Category: Trading Articles

Monday's mini crash brought both opportunity and questions

The notion that the best opportunities arise in the midst of a stock market meltdown is not a new one. What is new are some of the more recent rules put into place to deal with market volatility which, in some cases, have falling short of that goal. On Monday, the NYSE's seldom used Rule 48 (which was adopted on December 6, 2007) was instituted for the opening and, in many cases, contributed to a mini-flash crash among many equities and ETFs. It exposed underlying anomalies that both created huge opportunities for some and raked others of their hard earned money. It also raised some serious questions about how effective ETFs are in accurately representing their underlying stocks.

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  • Written by LA Little

Category: Trading Articles

Ugly stock-market action may result in attractive buy opportunity

It used to be said that if the U.S. markets caught a cold the rest of the world would catch pneumonia. In today's world, the U.S. remains the big dog but more and more, the world effects on our internal economics grows greater and greater. In Wednesday's "Silent Crash" article the hypothesis was that the U.S. markets were likely to be enveloped in the selling that was already well underway around the world. Last week's "Stock market breakdown article also outline the heightened and immediate risks we faced. That was the bad. Yesterday was the beginning of the ugly.

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  • Written by LA Little

Category: Trading Articles

Energy stocks for a trade - still not an investment

Six months ago it appeared there was a good chance that a longer term bottom was forming in the oil market. The March 2015 undercut of the January lows had all the markings of a potentialĀ  long term bottom - but it was not to be.

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  • Written by LA Little

Category: Trading Articles

Outside the U.S., a silent crash is already underway

With each passing day, the chorus of calls for a crash calls continue to mount yet the S&P 500 still sits within 2% of its all-time highs - nestled inside a 90 point range that has held sway for half a year.

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  • Written by LA Little

Category: Trading Articles

Stock-market technicals suggest a breakdance lower

It was almost two years ago to the day when I penned a very popular piece here on MarketWatch that was titledĀ "Quit worrying about a 1987-style crash". That article focused on the market structure required for a larger decline and, in the more rare case, a market crash. Though a crash isn't probable yet, witnessing a market break dancing lower is not only possible here - it's probable.

Read more: Stock-market technicals suggest a breakdance lower

  • Written by LA Little