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Options

Vol 411: Short Holiday Trading Week


CBOETV - Russell Rhoads, Director of Education, CBOE Options Institute, discusses December call activity, Vix and global volatility.

Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options. Copies are available from your broker, or at www.theocc.com. The information in this program is provided solely for general education and information purposes. No statement within the program should be construed as a recommendation to buy or sell a security or to provide investment advice. The opinions expressed in this program are solely the opinions of the participants, and do not necessarily reflect the opinions of CBOE or any of its subsidiaries or affiliates. You agree that under no circumstances will CBOE or its affiliates, or their respective directors, officers, trading permit holders, employees, and agents, be liable for any loss or damage caused by your reliance on information obtained from the program. 

Copyright © 2016 Chicago Board Options Exchange, Incorporated. All rights reserved.

This video is from CBOE and is being posted with CBOE’s permission. The views expressed in this article are solely those of the author and/or CBOE and IB is not endorsing or recommending any investment or trading discussed in the article. This material is for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IB to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.


15436




Technical Analysis

Technical Take: More Good Times Ahead for Emerging Markets?


Technical Take:

Stocks are ripping higher today and emerging markets are right there amongst the leaders as they have been all year.  The emerging markets ETF (ticker EEM) gapped higher on the open and is currently up 1.5% so far in the session.  Today’s entire range is above the upper Bollinger Band after having bounced off the lower band just four sessions ago.   The EEM ETF is now up more than 36% YTD which is far outperforming the US benchmarks Dow Jones and S&P 500 which are up 19% and 16% YTD.  This is only the second time in seven years in which emerging markets are outperforming the S&P 500, and it may be the start of things to come.  The below ratio chart of emerging markets ETF (EEM) over the S&P 500 Index (weekly period) shows a multi-year downtrend beginning at the peak in October 2010 and bottoming in Q1’16.  This initially was a major low back in 2004 and proved its importance when it held support in December 2016.  Thus what we have is a large, 12-month double bottom pattern following a six year decline.  In August the ratio broke out above the middle of the pattern which has since acted as support.  Now it is just beginning to emerge above its multi-year downtrend line which is often a recipe for accelerating upside momentum.  The long term nature of the pattern suggests a major low is in place and emerging markets have years of outperformance ahead.  

Nasdaq's Market Intelligence Desk (MID) Team includes: 

Michael Sokoll, CFA is a Senior Managing Director on the Market Intelligence Desk (MID) at Nasdaq with over 25 years of equity market experience. In this role, he manages a team of professionals responsible for providing NASDAQ-listed companies with real-time trading analysis and objective market information.

Jeffrey LaRocque is a Director on the Market Intelligence Desk (MID) at Nasdaq, covering U.S. equities with over 10 years of experience having learned market structure while working on institutional trading desks and as a stock surveillance analyst. Jeff's diverse professional knowledge includes IPOs, Technical Analysis and Options Trading.

Steven Brown is a Managing Director on the Market Intelligence Desk (MID) at Nasdaq with over twenty years of experience in equities. With a focus on client retention he currently covers the Financial, Energy and Media sectors.

Christopher Dearborn is a Managing Director on the Market Intelligence Desk (MID) at Nasdaq. Chris has over two decades of equity market experience including floor and screen based trading, corporate access, IPOs and asset allocation. Chris is responsible for providing timely, accurate and objective market and trading-related information to Nasdaq-listed companies.

Brian Joyce, CMT has 16 years of trading desk experience. Prior to joining Nasdaq Brian executed equity orders and provided trading ideas to institutional clients. He also contributed technical analysis to a fundamental research offering. Brian focuses on helping Nasdaq’s Financial, Healthcare and Airline companies among others understand the trading in their stock. Brian is a Chartered Market Technician.

This article is from Nasdaq and is being posted with Nasdaq’s permission. The views expressed in this article are solely those of the author and/or Nasdaq and IB is not endorsing or recommending any investment or trading discussed in the article. This material is for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IB to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.


15431




Stocks

Nasdaq Market Intelligence Desk - Equity Market Insight November 21, 2017


As of 10:45AM ET:

NASDAQ Composite +1.0% Dow +0.7% S&P 500 +0.66% Russell 2000 +0.9% S&P MID 400 +0.55%

NASDAQ Advancers: 1511 Decliners: 620

Today’s Volume (100 day avg) +7%

 

Equities in the US are higher again this morning, with the Dow up triple digits and the US Dollar Index is up for the 2nd consecutive day for the first time since 10/13. Corporate results remain a positive influence on stocks during the 4th quarter. Previously owned home sales in October were in line with the 3-month average, but have ticked lower throughout 2017. Information Tech (+1%)  and Healthcare (+0.7%) are the best performers this morning, as more than 70% of the S&P 500 is in the green.

  • Existing home sales report was slightly better (5.48) than expected (5.40)  but still weaker vs the same time last year. A combination of high demand to take advantage of attractive loan rates and low inventories has pushed price tags on purchases significantly higher in all US regions over the past year. Tomorrow, the markets will get a basket of data ahead of the Thanksgiving feast, including MBA Mortgage Applications, Initial Jobless Claims, Durable Goods Orders and U of Mich Sentiment.

The complexity of the proposed Tax Bill has economists examining the loopholes and if the middle class is the real benefactor of the reform. According to Bloomberg “Investors in billion-dollar hedge funds might be able to take advantage of a new, lower tax rate touted as a break for small businesses. Private equity fund managers might be able to sidestep a new tax on their earnings. And a combination of proposed changes might allow the children and grandchildren of the very wealthy to avoid income taxes in perpetuity.”

 

Nasdaq's Market Intelligence Desk (MID) Team includes: 

Michael Sokoll, CFA is a Senior Managing Director on the Market Intelligence Desk (MID) at Nasdaq with over 25 years of equity market experience. In this role, he manages a team of professionals responsible for providing NASDAQ-listed companies with real-time trading analysis and objective market information.

Jeffrey LaRocque is a Director on the Market Intelligence Desk (MID) at Nasdaq, covering U.S. equities with over 10 years of experience having learned market structure while working on institutional trading desks and as a stock surveillance analyst. Jeff's diverse professional knowledge includes IPOs, Technical Analysis and Options Trading.

Steven Brown is a Managing Director on the Market Intelligence Desk (MID) at Nasdaq with over twenty years of experience in equities. With a focus on client retention he currently covers the Financial, Energy and Media sectors.

Christopher Dearborn is a Managing Director on the Market Intelligence Desk (MID) at Nasdaq. Chris has over two decades of equity market experience including floor and screen based trading, corporate access, IPOs and asset allocation. Chris is responsible for providing timely, accurate and objective market and trading-related information to Nasdaq-listed companies.

Brian Joyce, CMT has 16 years of trading desk experience. Prior to joining Nasdaq Brian executed equity orders and provided trading ideas to institutional clients. He also contributed technical analysis to a fundamental research offering. Brian focuses on helping Nasdaq’s Financial, Healthcare and Airline companies among others understand the trading in their stock. Brian is a Chartered Market Technician.

This article is from Nasdaq and is being posted with Nasdaq’s permission. The views expressed in this article are solely those of the author and/or Nasdaq and IB is not endorsing or recommending any investment or trading discussed in the article. This material is for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IB to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.


15430




Stocks

Real Estate Sector 4Q17: Best and Worst


The Real Estate sector ranks tenth out of the 11 sectors as detailed in our 4Q17 Sector Ratings for ETFs and Mutual Funds report. Last quarter, the Real Estate sector was included within the Financials sector and did not receive an individual ranking. It gets our Unattractive rating, which is based on an aggregation of ratings of 12 ETFs and 194 mutual funds in the Real Estate sector as of October 11, 2017. See a recap of our 3Q17 Sector Ratings here.

Figures 1 and 2 show the five best and worst rated ETFs and mutual funds in the sector. Not all Real Estate sector ETFs and mutual funds are created the same. The number of holdings varies widely (from 23 to 166). This variation creates drastically different investment implications and, therefore, ratings.

Our Robo-Analyst technology empowers our unique ETF and mutual fund rating methodology, which leverages our rigorous analysis of each fund’s holdings.[1] We think advisors and investors focused on prudent investment decisions should include analysis of fund holdings in their research process for ETFs and mutual funds.

Eaton Vance Real Estate Fund (EIREX) is excluded from Figure 2 because its total net assets (TNA) are below $100 million and do not meet our liquidity minimums.

VanEck Vectors Mortgage REIT Income ETF (MORT) is the top-rated Real Estate ETF and AEW Real Estate Fund (NRFNX) is the top-rated Real Estate mutual fund. MORT earns a Very Attractive rating and NRFNX earns an Attractive rating.

PowerShares Active U.S. Real Estate Fund (PSR) is the worst rated Real Estate ETF and Rydex Real Estate Fund (RYREX) is the worst rated Real Estate mutual fund. PSR earns a Neutral rating and RYREX earns a Very Unattractive rating.

154 stocks of the 3000+ we cover are classified as Real Estate stocks.

The Danger Within

Buying a fund without analyzing its holdings is like buying a stock without analyzing its business and finances. Put another way, research on fund holdings is necessary due diligence because a fund’s performance is only as good as its holdings’ performance. Don’t just take our word for it, see what Barron’s says on this matter.

                                      PERFORMANCE OF HOLDINGs = PERFORMANCE OF FUND

Analyzing each holding within funds is no small task. Our Robo-Analyst technology enables us to perform this diligence with scale and provide the research needed to fulfill the fiduciary duty of care. More of the biggest names in the financial industry (see At BlackRock, Machines Are Rising Over Managers to Pick Stocks) are now embracing technology to leverage machines in the investment research process. Technology may be the only solution to the dual mandate for research: cut costs and fulfill the fiduciary duty of care. Investors, clients, advisors and analysts deserve the latest in technology to get the diligence required to make prudent investment decisions.

Figures 3 and 4 show the rating landscape of all Real Estate ETFs and mutual funds.

 

 

This article originally published on October 11, 2017.

Disclosure: David Trainer, Kyle Guske II, and Kenneth James receive no compensation to write about any specific stock, sector or theme.

Follow us on TwitterFacebookLinkedIn, and StockTwits for real-time alerts on all our research.

About New Constructs

Our stock rating methodology instantly informs you of the quality of the business and the fairness of the stock’s valuation. We do the diligence on earnings quality and valuation so you don’t have to.

In-depth risk/reward analysis underpins our stock rating. Our stock rating methodology grades every stock according to what we believe are the 5 most important criteria for assessing the quality of a stock. Each grade reflects the balance of potential risk and reward of buying that stock. Our analysis results in the 5 ratings described below. Very Attractive and Attractive correspond to a "Buy" rating, Very Dangerous and Dangerous correspond to a "Sell" rating, while Neutral corresponds to a "Hold" rating.

https://wit1.interactivebrokers.com/images/insights/15269/table2017-11-07_9-32-22.png

Cutting-edge technology enables us to scale our forensics accounting expertise so that we can cover enough stocks to cover the ETFs that hold them as well. Learn more about New Constructs. Get a free trial. See what Barron’s has to say about our research.

This article is from New Constructs, LLC and is being posted with New Constructs, LLC’s permission. The views expressed in this article are solely those of the author and/or New Constructs, LLC and IB is not endorsing or recommending any investment or trading discussed in the article. This material is for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IB to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.


15429




Technical Analysis

Apple Inc $AAPL | Technical Breakdown


Today we saw a strong rally in tech stocks but one that I’ve been watching closely was $AAPL because of the defined flag pattern it has been in for the past couple weeks.

As you can see in the daily chart above, shares finally broke out above the descending trendline on strong relative volume and are making their way back towards the $175 pivot.

Ideally we would like to see prices push through $175 and then again through the all-time highs of $176.24. Above there and we could see shares push into the $180s.

Taking a closer look at the price action on the 30-minute chart you will see that shares came ripping out of the breakout point and haven’t looked back. This is a very strong move and we will likely see some continuation over the next few days. Look for support around the $171.75 range followed up by $171 and $170 which should act as a major support level.

If you are looking to get long you can use the pivot low at $168.38 as your stop level. Below that and this flag pattern is broken and could see further downside.

 

Ross Cameron is an active trader and owner of Warrior Trading which he founded in 2012 as a live trading chat room emphasizing education and idea generation. In 2014, he began teaching trading classes, taking a break in 2015 to write a best-selling book How to Day Trade, which can be found at Amazon, Barnes & Noble, and other booksellers. Trading allows Ross to travel and bring his work with him. Today he continues to trade in his chat room and teach trading courses, and lives with his family in Vermont.

This article is from Warrior Trading and is being posted with Warrior Trading’s permission. The views expressed in this article are solely those of the author and/or Warrior Trading and IB is not endorsing or recommending any investment or trading discussed in the article. This material is for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IB to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.


15432




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Disclosures

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The material (including articles and commentary) provided on IB Traders' Insight is offered for informational purposes only. The posted material is NOT a recommendation by Interactive Brokers (IB) that you or your clients should contract for the services of or invest with any of the independent advisors or hedge funds or others who may post on IB Traders' Insight or invest with any advisors or hedge funds. The advisors, hedge funds and other analysts who may post on IB Traders' Insight are independent of IB and IB does not make any representations or warranties concerning the past or future performance of these advisors, hedge funds and others or the accuracy of the information they provide. Interactive Brokers does not conduct a "suitability review" to make sure the trading of any advisor or hedge fund or other party is suitable for you.

Securities or other financial instruments mentioned in the material posted are not suitable for all investors. The material posted does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation to you of any particular securities, financial instruments or strategies. Before making any investment or trade, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice. Past performance is no guarantee of future results.

Any information provided by third parties has been obtained from sources believed to be reliable and accurate; however, IB does not warrant its accuracy and assumes no responsibility for any errors or omissions.

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