In part 2 of this series I am going to dumb down a key aspect of bear markets that has largely remained unknown to the vast majority of retail traders. It is important to embrace the fact that while the gray unwashed masses focus solely on the daily gyrations of the VIX professional traders instead religiously follow an exotic construct called the Implied Volatility Term Structure (IVTS).
For the next three days I will still be pretty limited in my ability to properly follow the market all the way out here in the Spanish boonies. Internet access is acceptable at about 10Mb/sec but my MBP’s 15” Retina display – albeit crisp and more than appropriate for regular tasks – hampers my abilities to properly run through my extended list of charts and market scanners. Although I am really not looking forward to returning to Valencia during a nationwide quarantine I am eager to jump back into the action in full force. For there are real fortunes to be made in the days, weeks, and months ahead. And this is the moment when you should start paying very [...]
Here I am – stuck in our vacation rental thanks to a nationwide quarantine taking effect this morning – and honestly I could not be happier. Although I have never been a perma-bear the past decade of eternal effervescence had become the bane of my existence. Living in Valencia I increasingly noticed it everywhere around me as unbridled mass tourism is a prime litmus test for an economic bubble that’s just waiting to be pricked. Beyond mere ‘moral hazard’ the grand financial experiment of the 21st century wrought cultural and social implications that ended up destroying families and inter-personal relationships on a mass scale, and in the process pitted [...]
If I could have a penny for every setup I felt enthusiastic about and that invariably blew up in my face I would be… well, a lot richer than I am. To be honest when it comes to picking juicy entries off a chart I rank about average. What may set me apart from the rest, and what has helped me survive in a wide range of market conditions over the years was learning to overcome my instincts and engage in setups that scared the heck out of me.