Market Report Has the Bubble Begun to POP
By Todd Horwitz on Feb 28, 2021 at 1:23:52 PM

 Market Report Has the Bubble Begun to POP?

By

 

Todd Horwitz Chief Strategist BubbaTrading.com

Be Prepared not Surprised.

For the first week in many markets were lower last under some heavy selling pressure. Warnings are starting come more frequently and markets look and feel tired. However, we are not calling a top only given our observation and our algorithms are still long.

Although there appears to be weakness here and plenty of warning signs the option continues to buy calls. Call buying has been on top of the leaderboard for months. Making a big move up the board is bear calls, followed by bull put spreads and bull call spreads.

Last week we saw another round of crazy trade in GME. The stock spiking almost 120 points in the aftermarket, IV was close to 800% during this action. No one knows where the mess will end but there will be many hurt in the path.

The top of the bullish list of symbols has changed slightly, tech is not dominating this week which makes sense considering the pressure the Nasdaq was under last week. SQ moved into the top slot, followed by BA, SPY and AAPL.

The top bear symbols are not obvious, except for the QQQ’s, it was XLF, PAAS and JPM. This week will go a long way in telling us what is next. We will be watching the price action for clues and will react when we see a favorable set up.

Patience and discipline are always the best strategies.

Todd “Bubba” Horwitz

BubbaTrading.com


Understanding the Short Squeeze
By - Dan Raju, Tradier CEO on Feb 23, 2021 at 7:55:30 PM

Stock-exchange-market-concept-EMC7RXV

If you were left scratching your head by the recent surge in GameStop stock and wondering how it was possible, you’re not alone. While the resulting “GameStop short squeeze” was an unusual situation, it holds some valuable lessons for traders.

The Buildup

Some hedge funds believed GameStop’s business model wouldn’t succeed. The brick-and-mortar video game shop appeared poised to fail, as more consumers are purchasing games online nowadays. Believing that GameStop stock prices would continue to fall, hedge funds sold GME common stock, thinking it would continue to decline and thus the funds’ short position would turn a profit. 

What is Short-Selling?

In short-selling, traders essentially “borrow” shares from people who already own them. They’re reserving the option to buy the stock back once it declines in price, allowing them to return the shares for the lower price and pocket the difference. However, if the stock price goes higher, things can go south for these short sellers quickly.

When the shorts are no longer available, or if the stock rises in value, investors must either cover them at a loss or increase their investment to margin their position. The more purchases of a stock, though, the higher the price rises — causing extreme losses if an investor doesn’t exit the trade in time.

If the number of shares available to borrow plummets, as typically happens for a stock that doesn’t appeal to most investors, traders also face higher costs to borrow the shares. Some short-sellers take this as a sign of opportunity. What we learned from the GameStop short squeeze is that this isn’t always the case.

What Happened With GameStop?

Near the end of January 2021, the value of GameStop (ticker: GME) skyrocketed after people from the Reddit group, r/WallStreetBets, purchased shares of GME stock and pushed the stock’s value higher. This resulted in a short squeeze: a phenomenon in which a stock’s value rises sharply and unexpectedly, causing those who bet the other way to buy up shares to cover their short positions. In response to this squeeze, investors who had bet on GME’s decline now had to scramble to cover their losses.

The Short Squeeze’s Effects

Once the Redditors began their purchases, GME began to rapidly rise in price. Short-sellers began to panic. As GME continued to skyrocket higher, the shorts had to cover their positions by buying more shares to pay back the ones they borrowed. 

The resulting effect multiplied as the shorts kept getting shorter, causing those investors to have to buy more. This, in turn, drove the stock price ever higher. The result? GME experienced a whopping 1700% growth in just under a month.

While GME’s value has dropped to normal levels, many of the hedge fund’s short-sellers experienced record losses, simply because there was temporarily no limit to the stock price. Those short positions placed those investors in an untenable situation: they were unable to exit without taking at least some loss.

What Traders Should Know

What can traders take away from this phenomenon? First, that trading during a short squeeze is exceptionally risky. While some of the Reddit investors did walk away with exceptional profits, many lost a lot of money. Meanwhile, short sellers were unable to stop the hemorrhaging.

So, always thoroughly research any stock before trading, and be cautious when shorting a stock. Even a bit of positive news about the company can boost the price, which could place you in a position to take a loss. To learn more about how to identify and prepare for a short squeeze, check out Short Squeeze: What It Is and How To Make The Most Of It written by Alexander of daytradingz.com.

For more, check out Lex and Mark’s run-through here.


Tiblio connects with Tradier
By Tradier Inc. on Feb 22, 2021 at 2:58:20 PM

Welcome Tiblio.

We are super excited about Tiblio and its integration with the Tradier platform.  They offer great pro-level tools and combine fanatical support and great training. Leon Smith and Kevin Hamilton are trying to bring a great combination of Technology and Education to the Retail Options Market. 

https://tiblio.com/

 

 

 

 



By Tradier Inc. on Feb 22, 2021 at 2:45:12 PM

The future of brokerages: Tradier CEO Dan Raju on Nasdaq Trade Talks

https://www.nasdaq.com/videos/tradetalks%3A-the-future-of-brokerages


Five Essential Habits Seasoned Traders Build
By - Dan Raju, Tradier CEO on Feb 22, 2021 at 9:04:56 AM

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Many types of traders enter the stock market every day. Some are managing funds for someone else, some are risk-takers, some are long-term savers, and some make all their income as day traders. Each of these types of traders interact differently with the market, but they all rely on some basic principles and practices in pursuing successful trades. These are five essential habits you should build if you want to grow as a trader.

They Create a Trading Plan

Whether they manage their own account or have someone else manage it for them, successful traders create a trading strategy that is specific to their goals. A good strategy should contain a set of rules that guides your entry, exit, and money management criteria for every purchase. It is critical that traders stick to the strategies they set for the chance of long-term success. For example, if someone makes a plan containing moderate risk but decides to invest in a highly volatile stock, they aren’t following their plan. Even if they made positive gains from the risky trade, there isn’t a guarantee that it would work out again.

They Capitalize on Technology

Trading is a competition, so it is important to have the right tools to compete. The other trader across the table is not working in your best interest. You can bet other traders are not sharing the best tools or technology they use for trading, so traders make sure that they or their broker are using the best technology on the market. Many trading platforms offer backtesting, option chains, and historical analysis to help investors feel confident about their trades. Also, many traders make sure to invest in a trading platform with a mobile app so they can monitor their account on the go. 

They are Constantly Studying the Market

Even the most successful traders consider their time as a trader a lifelong study. There are many variables that affect the market, like world events and unexpected industry trends. Traders keep up with this information to know where the market stands. If you approach trading with a focus on learning, you will only become a better investor. It is an ongoing process where you will learn something new every day. 

They Only Risk What They can Afford to Risk

As a principle, you should only trade with expendable income. Do not use capital meant for a mortgage or a child’s college fund. The money you put into the stock market is always running the risk of loss, so you should never borrow money from your nonexpendable income. Losing money in the market is common but losing money that should have never been in the market in the first place is much more painful.

They Keep Their Goals and Perspective in Check

Experienced traders recognize that losses and gains are both a part of investing. Emotions can run high when trading in the stock market. Making a fruitful gain on trade can give you an emotional high for days, and a loss can hit just as hard. Having reasonable expectations will help you keep a measured view of your investing goals.

The Takeaway

Keep these habits in mind when you start investing to make better-informed decisions and avoid unnecessary loss. If you are interested in opening a brokerage account, make sure to check out Tradier. Tradier offers access to real-time market data, options and stock-charting tools, and backtesting to provide you detailed insight into your trading options and inform your strategies.

You can find out more about opening a Tradier account here.


Market Report Sellers try and Fail
By Todd Horwitz on Feb 21, 2021 at 1:08:21 PM

 Market Report Sellers try and Fail

By

 

Todd Horwitz Chief Strategist BubbaTrading.com

Be Prepared not Surprised.

Last week the sellers gave it the old college but were once again met by the buyers. All major indices made new highs as they continue to rack up the records. The FED Put remains the story, low interest rates, stimulus keeps the buyers happy.

There are a couple of illogical divergences especially in the bond markets. Although the FED continues to say there is not enough inflation and will keep rates low, bond markets are getting hammered which indicates higher rates.

The Bond/Fixed Income are the biggest markets in the world and appear to be in a battle with the FED. With FED continuing to hide behind an antiquated model to determine inflation, we could see a period of hyperinflation. The story will soon play out, the result will be huge for markets.

The Option Markets are still pricing bullish price action, for about the 10th week in a row call buying leads the strategy board. Although the VIX is falling Put buying came in number two this week. Rounding out the top 5, bull put spreads, bear puts and naked call selling.

We are seeing a change in the leadership, for the first week in many techs were not the leader. SPY and BA led the bulls followed by PLTR, NVDA and SQ (which is also a crypto play), Bear trades continued in TLT, HD XLF, FB and the VIX.

Todd “Bubba” Horwitz

BubbaTrading.com


Market Report Bulls Running Wild
By Todd Horwitz on Feb 14, 2021 at 1:32:13 PM

 Market Report Bulls Running Wild

By

 

Todd Horwitz Chief Strategist BubbaTrading.com

Be Prepared not Surprised.

More new highs for the equity markets, nothing matters. Bad economic news markets go higher, lousy jobs they go higher. Nothing matters but the price action of the market and that remains bullish.

These are the type of markets that create heartburn for many traders and investors. Many feel compelled to call tops which is always a fool’s game. If you always remember that markets are never wrong, but opinions often are it will help you follow price action and trends which will lead you in the path of least resistance.

Naturally, the options market has led this latest run with call buying continuing to lead the way. Bull put spreads have moved into the number two spot. There are a few bearish trades being made but appear to be more about selling credit. The bottom line is simple, markets will continue to rise until they don’t.

Tech remains the overall leader with bullish trades being made in AAPL, AMD, NVDA and SQ have been active. There was a lot a movement in the electric vehicle space and pot space. TSLA, NIO and TLRY going wild. On the bear side SPY, BBY, GME and FDX leading the way.

WallStreetBets remains a big story with their efforts to create short squeezes which appears to be the case in the cannabis stocks last week. They appeared to try and create a squeeze in Silver and quickly found it would not work, later they called fake news.

Trading is best when we remember to know our exits, stay away from news items. You must keep emotions and opinions out as we are witnessing right now. There is no reason for these markets to continue higher except that they are. 

Todd “Bubba” Horwitz

BubbaTrading.com


Tradier welcomes Tim and David
By Tradier Inc. on Feb 9, 2021 at 9:35:33 PM

Welcome to Tim and David.

We are super excited to welcome Tim Macdonald and David Burch to the Tradier Family. It’s amazing to have such talented new members as a part of our dynamic growing team. We’re honored to have them with us.

  • Tim Macdonald joins us from MetLife as our new AVP of Marketing. Tim is a seasoned marketer with a creative eye and will play a crucial role in enhancing our co-marketing programs, launching our customer-facing market place, and other initiatives. He has a bachelor’s from the University of Illinois and an MBA from Central Michigan University.
  • David Burch comes to us from Ally Invest and joins our Brokerage Services and Operations team in Charlotte. As a representative broker, David brings deep regulatory experience, active trader focus, and the ability to support the rapid growth of our brokerage offerings. David’s extensive experience includes MetLife and LPL. David has a Series 4,7,63,24,53 and 55.

Thanks to David and Tim for choosing to be a part of Tradier!

Congratulations and welcome aboard!

- Dan Raju | CEO  Tradier


QuantGate expands its offering to the US Markets through Tradier Integration
By Tradier Inc. on Feb 8, 2021 at 11:35:23 AM

QuantGate teams up with Tradier to empower retail investors with intelligence and an edge with its easy-to-use AI based platform

 

Toronto, Ontario and New York, New York--(Newsfile Corp. - February 8, 2021) - QuantGate Systems Inc. (OTCQB: QGSI) (the "Company") is pleased to announce that it will be integrating Tradier Brokerage Inc. into its  trading platform. Customers will be able to use QuantGate’s mobile trading app, Pilot, to trade stocks within their existing portfolio. Traders can combine Tradier’s commission free pricing and rapid execution with Pilot’s ability to identify prime trading opportunities.  The offering is perfectly suited of active traders seeking a competitive edge and convenience. Pilots AI and machine learning models learn and anticipate upcoming price behavior and presents this information in intuitive visual models for effective interpretation.

QuantGate’s mission is to empower self-directed investors worldwide to make better trading decisions and thrive in the market. The integration with Tradier Brokerage Inc is an important step  in reaching investors and fulfilling its mission.

"The team at QuantGate built its platform with a trader in mind every step of the way. We are pleased to partner with Tradier Brokerage to provide Pilot users and individual investors the ability to trade stocks commission free, using our performance enhancing technology. We look forward to launching this offering the US market in the coming weeks.” said QuantGate’s COO, Ilan Yosef.

“We are super excited at Tradier to partner with innovators and technologists like the team at QuantGate. We believe that the platform will serve as a great one-stop platform for active traders and new earlier stage traders alike” said  Dan Raju , Tradier CEO

About Tradier Brokerage Inc.

Tradier Brokerage, Inc( https://brokerage.tradier.com ), member FINRA and SIPC is an independent subsidiary of Tradier, Inc. The Brokerage API enables entrepreneurs, businesses, developers and active traders to solve their trading and brokerage challenges using independent content and tool providers of their choice — at simple and competitive prices.

 

About QuantGate Systems Inc.

QuantGate System Inc. (OTCQB: QGSI) (www.quantgatesystems.com) is a fintech company that has developed a real time sentiment trading platform, powered by sophisticated artificial intelligence and complex big-data processing algorithms, that identifies trading opportunities across multiple asset classes and financial exchanges. The platform simplifies investment decision-making to enable all types of investors to trade Stocks, Forex, Futures and Cryptocurrencies with confidence and empower the financial institutions (that serves investors) with best-in-class trading products and solutions. Having commercialized this technology, mobile, desktop and API products are now available to both retail and institutional investors globally.

Forward-Looking Statements

Except for historical information contained herein, the matters set forth above may include forward-looking statements that involve certain risks and uncertainties. Words such as "may", "could", "anticipate", "believe", "estimate", "expect", "intend", "plan", and similar expressions are used to identify forward-looking statements. These forward-looking statements are based on the current beliefs of management, as well as assumptions made by and information currently available to management. The Company cautions that all forward-looking statement are inherently uncertain and that actual results could differ materially from those contemplated by the forward-looking statements.

QuantGate Systems Inc. does not undertake any obligation to update any forward-looking statements and cautions investors to consider all other risks and uncertainties, including those disclosed in QuantGate filings with the United States Securities and Exchange Commission.

 

Media Contacts

QuantGate Systems:
media@quantgatesystems.com


Market Report: WallStreetBets Creates Havoc
By Todd Horwitz on Feb 7, 2021 at 2:09:44 PM

 Market Report: WallStreetBets Creates Havoc   

By

 

Todd Horwitz Chief Strategist BubbaTrading.com

Be Prepared not Surprised.

Just when you thought the bubble was bursting, markets make new all-time highs. For those trying to time the market, once again they walk away with their tail between their legs.

WallStreetBets continues to crate havoc in the markets. They started with GME and AMC squeezing GME from 50 to 483 and now back to 64. AMC from 5 to 20 and back to 7. They were attempting to do the same in Silver, when it didn’t work, they claimed it was fake news.

Short squeezes are a part of markets which is why Bear Market rallies are the most vicious. However, everything points to the rally to continue. Whether it’s the chase for yield, additions to the money or there simple is no place to go. When trading its always best to follow the path of least resistance.

Option buying remains strong which continues to support the VIX near the 20 level. Although we have seen some big spikes it appears the new levels for the VIX are around 20 which is almost 100% higher than a year ago. Call buyers are firmly in charge.

The top options strategies for last week were split, bullish/bearish. Tech remains the leader on the Bullish side with TSLA, AAPL, QQQ, SQ leading the way. If we consider online gambling as tech you can add to the bullish list, DKNG and PENN. The Bearish leaders were SPY, XLF, GME, DIA and JWN.

Trading is best when we remember to know our exits, stay away from news items. You must keep emotions and opinions out as we are witnessing right now. There is no reason for these markets to continue higher except that they are.  

Todd “Bubba” Horwitz

BubbaTrading.com



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