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Short term trades in the stock market •$$$$$•

Lyfespan

Active member
The rally in oil has been almost all short covering.

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and this...

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I bet that a few more shorts will cover until the farcical OPEC/non-OPEC meeting that is supposed to happen next month. Once everyone realizes that Iran and a few others are going to want to increase production before freezing (ie. all others will not freeze production as this equals lost market share).

At this point or right before this meeting I would expect short interest to increase again and prices to fall. Probably back to $26 or less since this rally had no new buyers, just shorts covering for profits. According to the Commodities Futures Trading Commission this is the biggest short squeeze EVER. The fundamental problem of crashing global aggregate demand hasn't been solved.

I also expect that the S&P to stay range bound between ~1890-2100. When it comes time for the Fed to raise rates the algo's will have pushed the SP down to corner the Fed. The Fed won't raise and SP will rally. Wash rinse repeat with the sporadic jawboning by Bullard and other Fed officials that will contradict whatever Yellen is saying to add to the confusion.

I bet this continues until after the elections and the next President will be the bag holder. Or if the oil default cycle of highly leveraged energy companies begins we'll probably see negative rates and helicopter money all over the place.

so how should a noob investor play this to make a lil money?
 

SpasticGramps

Don't Drone Me, Bro!
ICMag Donor
Veteran
so how should a noob investor play this to make a lil money?
I just like to read about the finance news honestly. I have no idea how to trade central banks. When I went to school (not usa) (I'm 35) economics and markets had fundamental causes. Underlying real activity that was quantifiable.

I hoard physical shit and watch this as if it's the new MTV. I threw away my TV. Use to work in the oilfield. So I have a particular attraction to the energy sector default cycle and have been watching this rally.

Pro's are having a hard time making money in this market. I can't say in good faith how a noob would. My money is in the physical shit department.

I've thought about playing long term VIX (which I think noobs like me and you have to play an ETF to trade??). VIX (volatility index) is low now. ~15. 08 saw it ~56. Betting on another banking crisis. I've thought about trading it, but honestly Yellen or Draghi, Swiss, Japan, or all of the above may wake up and do who knows what the fuck as they have done for the past 8 years. Or press release some words that move the markets trend. It's bizzzaro land man.

Random macro-econ opinion after smoking some dab bro. Trade accordingly.
 
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TNTBudSticker

Well-known member
Veteran
I found some cool shitz to talk in a posted forum room and watch the market in real time and folks chatting about whats going on with Oil.

http://www.investing.com/commodities...chart#comments

http://www.investing.com/commodities...oil-commentary
This is the streaming chat without the graph.

I use this as a gauge to read INTO the Market as when to enter a trade.And read into people opinions.

Someone asked about how to trade oil...USO is one stock.
But Alot of sentiments wants oil to be around $30-$20...You will learn about EIA,API,Gasoline stocks.And how it affects the price of oil.

Watching the Economic Calendar about who is speaking like Yellen about the Rates affects the market and see the chatting into the forum.Been only 3 weeks and I've learned alot there.I don't trade futures,just stocks for now.

Since Gold has been see-sawing,I have been eyeing DUST which is Bear3X gold etf.Have we hit a bottom ?...Start small and add to it,just buy the lows..might just work to have a profit when Gold goes down and DUST goes up....I would put a limit order for $2.75 and see if it can rise after that and then repeat on it's next low to buy again with a limit order.

About these ETF,just hope it doesn't split 20:1 and find it at $30.00 a share overnight so it might help to finish the trade.They always let the investor know whats going on so keep an eye on the news every few days.
 

TNTBudSticker

Well-known member
Veteran
So with the future looming for SMG - Miracle Grow looks very Good with alot more states legally pot forming overgrown.Soil is the keyword here.

It hits its high.With elections around the corner,one can use limited exposure and buy more when it drops.:woohoo:
 

TNTBudSticker

Well-known member
Veteran
Yesterday 8-5-16,JPMorgan recommended Scotts Miracle-Gro (SMG) to its clients and changed its rating to Buy from Hold because it believes Scotts’ recent hydroponics business acquisitions will pay off as legal marijuana use increases.

Companies (SMG)(Buying Most) are moving into the cannabis space for three key reasons.The first reason is cash.Cannabis growers generate a lot of revenue at much higher margins than they would generate from growing ordinary produce.Second,young technology entrepreneurs and biologists are able to bring their skills to an industry poised to see incremental growth for years to come.Third,there is plenty of demand among growers.

OverGrow!
 

HL45

Well-known member
Veteran
Love this thread! Hoping to invest in some long term stuff at the end of the season ande also check out some penny stocks. I've been reading from time to time, but I still have alot to learn.
 

TNTBudSticker

Well-known member
Veteran
Ok..News Flash...Reading where according to a Model 2008-2009 footnote that the interest rates in the USA should have been MINUS 9%...Yes -9% and since all this time and now they are thinking NEGATIVE rates for USA instead of the increased Rates for the Very First time.

Gold going up some more? Maybe.

Basically the fed is stuck because of their own stupidity.If they raise the rates,the amount of interest on debt will simply pummel us and take a LONG time if ever to get back to even.If they drop the rates,there will be a short term hard run on the banks.And even then money isn't going to be pumped into the economy.We have a service industry with stagnant wages and so many people not employed or working with such a low wage,they have no money or power to make a difference.Meanwhile,prices will just keep rising making it harder for the common person to afford everyday goods.

http://finance.yahoo.com/news/feds-janet-yellen-mulls-negative-interest-rates-183711629.html
 

Lyfespan

Active member
Ok..News Flash...Reading where according to a Model 2008-2009 footnote that the interest rates in the USA should have been MINUS 9%...Yes -9% and since all this time and now they are thinking NEGATIVE rates for USA instead of the increased Rates for the Very First time.

Gold going up some more? Maybe.

Basically the fed is stuck because of their own stupidity.If they raise the rates,the amount of interest on debt will simply pummel us and take a LONG time if ever to get back to even.If they drop the rates,there will be a short term hard run on the banks.And even then money isn't going to be pumped into the economy.We have a service industry with stagnant wages and so many people not employed or working with such a low wage,they have no money or power to make a difference.Meanwhile,prices will just keep rising making it harder for the common person to afford everyday goods.

http://finance.yahoo.com/news/feds-janet-yellen-mulls-negative-interest-rates-183711629.html

i hear so much of the "purposelessness" out there its crazy. makes sense.
 

SpasticGramps

Don't Drone Me, Bro!
ICMag Donor
Veteran
Ok..News Flash...Reading where according to a Model 2008-2009 footnote that the interest rates in the USA should have been MINUS 9%...Yes -9% and since all this time and now they are thinking NEGATIVE rates for USA instead of the increased Rates for the Very First time.

Gold going up some more? Maybe.

Basically the fed is stuck because of their own stupidity.If they raise the rates,the amount of interest on debt will simply pummel us and take a LONG time if ever to get back to even.If they drop the rates,there will be a short term hard run on the banks.And even then money isn't going to be pumped into the economy.We have a service industry with stagnant wages and so many people not employed or working with such a low wage,they have no money or power to make a difference.Meanwhile,prices will just keep rising making it harder for the common person to afford everyday goods.

http://finance.yahoo.com/news/feds-janet-yellen-mulls-negative-interest-rates-183711629.html
All the central banks are doing is transferring what little wealth is left in the world into the hands of a smaller and smaller group of elites. When wealth disparity becomes this large, according to history, the downtrodden and exploited usually rise up in violent rebellion.

The Fed can never raise interest rates. They were never going to be able to. This "experimental monetary policy" was never a "new" experiment. Monetizing debt isn't some new thing these Ivory Tower geniuses thought of. It's been tried many times before and always results in the destruction of currency and creates failed states. This is, however, the first time in history that almost every country in the world tried to monetize their debt at the same time. What could go wrong?

We are well on our way to a monetary and political crisis in the US, Japan, and Europe. When the proles get too restless it will be time to cull the herd again and TPTB will surely try, and most likely succeed, in dragging us into WWIII (the last great culling being WWII). You can see the stage being set with Russia in the daily propaganda news cycle in the US. We are being conditioned daily to view Russia as the new enemy, any false flags will be blamed on them and off to the slaughterhouse the herd will go.
 

SpasticGramps

Don't Drone Me, Bro!
ICMag Donor
Veteran
Hmm... Trump takes the cake. Markets vomit into the anti-establishment political crisis at hand.

Political black swans dining on the lake at pale moon. Dark and beautiful.
 

St. Phatty

Active member
Hmm... Trump takes the cake. Markets vomit into the anti-establishment political crisis at hand.

Political black swans dining on the lake at pale moon. Dark and beautiful.

A relief, for me. President Trump, I can live with that.


For about 24 hours there, there was WHAT LOOKED LIKE a HUUUGE asymmetric investing opportunity.

Very similar to Brexit, the markets were betting on "status quo".


The expectation was that a Trump victory, would have a similar effect to the Brexit vote ... market decline.

But Wednesday morning, US equity market is 'flat', no big moves.

Euro. markets were down, now climbing back to 'flat'.


Looks like the anticipated Trump victory market tantrum is yet to materialize.
 

LowFalutin

Stems Analyst
Veteran
bummed the market came back as of market opening this morning.
had quite a few shares of SQQQ, a 3x short ETF of the NASDAQ.
but my BIB, a 2x bio-tech index ETF, came back 18.4% today.
so there's that.


A relief, for me. President Trump, I can live with that.


For about 24 hours there, there was WHAT LOOKED LIKE a HUUUGE asymmetric investing opportunity.

Very similar to Brexit, the markets were betting on "status quo".


The expectation was that a Trump victory, would have a similar effect to the Brexit vote ... market decline.

But Wednesday morning, US equity market is 'flat', no big moves.

Euro. markets were down, now climbing back to 'flat'.


Looks like the anticipated Trump victory market tantrum is yet to materialize.
 

TNTBudSticker

Well-known member
Veteran
Watching this as it unfolds with President Trump is the health Care sector took a whammy.Looking at My Fools list.
CNC and MOH took a 19% and 15% loss today.

Kicking out Affordable Care when No One could afford it.Oh Yea...It's getting kicked out it seems.Companies taking losses and tax-payers not paying for it.Some hedge funds might be going South.

Hearing about some losses are going to lose 10% over the next ten days....KSU-trains,Gun manufactors-SWHC,RGR,STZ-booze.
 

Lyfespan

Active member
election made sprint tmobile merger possible and blocks the att merger :) knew it was going to be good when sprint tanked earlier this year, couldnt help but buy some
 

St. Phatty

Active member
Although the Brexit vote hammered markets, most indices and tickers have since slowly returned to where they were pre-Brexit-vote.

I thought a Trump election would have a similar effect to Brexit.

The short term effect is very different !


Back in 2009, when the US gov. announced they were going to do QE1, I remember Gold increased about 9% that day, March 18.

But then, it gave up about 2/3 of that gain - a month later, it was only up 3% from the March 17 (St. Patty's Day ! ) price.


Now interest rates have gone up 1/4 percent in 2 days, since the election.

Yet Trump is talking about lowering taxes, and lots of public works projects (sort of like a combination of Reagan & FDR ?).

The government will be needing to borrow MORE money. They have a big interest in keeping interest rates low enough so that servicing the US national debt is manageable.


Anyway, I find there are lots of 'trading opportunities' that are hidden in or implied by a study of world affairs. Almost like having insider information.
 

TNTBudSticker

Well-known member
Veteran
(Miracle Grow)SMG looking good ! $81.78 +$2.24 (2.82%)

.50 cents Dividend.Dirt looking Nice these days.

This was posted on the 8th and now its the 22nd...It hit $90.25 !! and payed out a .50 dividend.
YTD= Year to date it's up 39% which is very good and the timing of the election and marjiuana legality and to watch when they may raise the interest rates in December.
At the same time some companies might benefit from Trump's 15% instead of 35% taxes on big business.

Dirt is the new Gold Mine :) :woohoo::woohoo:
 

yesum

Well-known member
ICMag Donor
Veteran
Well the Trump train has given me a nice holiday bonus. Time to sell now and wait and see if his actual policies will be positive? Am in the S&P 500 ETF 3X.

Gonna ponder it all over the weekend and try to come to some conclusion. I am up about 9% for the year so that is adequate for my needs. I would like a whole lot more but that usually ends bad.

If I had to guess there might be a few more percent to be gained before the end of year. Once he is in..... no idea.
 
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