Do you remember last week when I tweeted from the FMA conference about the luncheon speaker who pointed out the fact that levered ETFs that regularly relever are good at mirroring the market on a daily basis, but in the long term are bad bets since they are short an embedded option on Gamma which m ... Read more

Yesterday we discussed the fact that many successful professional traders and hedge fund managers scale into positions. Today in the second part of this four part series we'll look at the various scaling methods. Scaling-in with Two Pieces Scaling in with two pieces means you'll buy h ... Read more

A few years back I got into a conversation with one of our clients who had just wrapped up a successful career in corporate law and was using his knowledge to start his own hedge fund. Starting a hedge fund is not easy. Beyond the fact that you need to have strategies that constantly create alp ... Read more

A solid start led to an ugly finish yesterday, as a late-day sell-off sparked substantial losses across the board. After trending higher throughout the morning session, stocks initially erased Tuesday's losses and were back to testing their recent highs. Thereafter, the main stock market indexes m ... Read more

This month TradingMarkets.com launched their ETF PowerRatings system. It's a spinoff of Stock PowerRatings, a popular rating tool designed to let traders see at a glance which stocks are likely to advance or decline within a set period of time. I've played around with the new ETF PowerRatings a ... Read more

Today (Wednesday October 14) the market is going to open significantly higher and create an extremely overbought short-term condition. Whether this overbought conditions run for a few hours or a few days it's going to eventually pullback and provide some excellent short-term buying opportunities a ... Read more

Stocks got off to a rough start to begin the fourth quarter, logging heavy losses across the board. There would be no repeat of Wednesday's session, where broad market averages reversed sharply to the upside after a steep morning selloff. The selling pressure was persistent all session long, confi ... Read more

Commodity ETFs trade differently than equity ETFs. We've said this from the beginning. When you look at their historical results, they underperform equity ETFs when trading in a reversion to the mean style. Read this article. It's about what just happened with DXO. You don't need this added e ... Read more

Recently there has been a good deal of discussion based upon how just simply using a moving average has outperformed buy and hold in the S&P. This was published recently by a newsletter writer in a book and then Fidelity did their own twist to the test adding a second moving average and findin ... Read more

This weekend I got a chance to read a wonderful new book Finding Alpha: The Search for Alpha When Risk and Return Break Down (Wiley Finance) by Eric Falkenstein The book looks at ways that alpha can be found and possibly more importantly the many ways that professionals fool themselves into ... Read more