Market Report Interesting, Diverging Markets
By Todd Horwitz on Mar 28, 2021 at 6:19:41 PM

 Market Report: Interesting, Diverging Markets

By

 

Todd Horwitz Chief Strategist BubbaTrading.com

Be Prepared not Surprised.

The wild and crazy markets roll on. Major divergences have become a regular occurrence. Last week saw the Dow and S+P make new closing highs, while the Russell and Nasdaq closed lower for the week. That tells a story of uncertainty.

We are witnessing the power of the FED and cheap money policies. While the FED blows up the money supply, they maintain their stance of no inflation. If you have been to the gas station or grocery store recently the inflation data is laughable. Of course, it appears the FED continues to use antiquated models.

One thing we must remember, don’t fight the tape or trend. Until further notice the trend appears higher and is being backed up by the options being traded. Call buying remains in the leadership role followed by bull put spreads and put selling. In other words, it looks like the bulls are still in charge.

The bullish symbols continue to rotate with this week’s leaders, IWM, FB, BA, AAPL and the continuation of GME and DKNG. There are a few new names on the bear side as well with the SPY leading the way followed buy AMD, AMZN, XLU and MCD.

There are many things that don’t make sense but trying to navigate or predict the end of a bubble are impossible. Stay with the trend until it changes. If you try and trade the news, you lose.

Every Monday we do a strategy call. This week the call starts at 4:30 EST.  Use the link below to register 

2021-03-29 Monday Night Strategy Call 

Todd “Bubba” Horwitz

BubbaTrading.com


Market Report: Markets in Tenuous Uptrend
By Todd Horwitz on Mar 21, 2021 at 11:39:22 AM

 Market Report: Markets in Tenuous Uptrend

By

 

Todd Horwitz Chief Strategist BubbaTrading.com

Be Prepared not Surprised.

Markets have been in a wicked consolidation pattern with a bias to the upside. This move is tenuous at best. The price action is not a bullish as it has been, but the trend is the trend. Traders learn not to fight the tape or the trend no matter how bad it looks.

It appears that the FED is starting to panic as the markets get away from them. On Friday morning the FED stopped the (SLR) supplementary leverage ratio for banks. The lending policies have been the main source of the rally which is looking more and more like a bubble.

Amazingly the options strategies leaders are bullish or at least appear that way. One thing we always want to remember is things may not be as they appear. With the number one strategy being call buying those who are short could be covering up their short positions creating a synthetic put. There has been a little more bearish activity with some put buying, however the VIX is dropping.

As you can see, the markets are confused as well as the traders. The only thing that remains constant is the options strategies being used. The bullish symbols have changed again with GME on top, followed by AAPL. SPY, PLTR and BA. Bearish leaders are FXI, VXX, DASH, AMD and CVX.

To sum everything up, markets are on edge and can move either way. Confusion is everywhere which is the pure definition of consolidation and uncertainty. Eventually there will be a big move and we will be ready.

Todd “Bubba” Horwitz

BubbaTrading.com


TRADIER ANNOUNCES THE ACQUISITION OF POPULAR COMMISSION FREE MOBILE TRADING APP RHO
By - Dan Raju, CEO at Tradier on Mar 18, 2021 at 12:28:38 PM

Leading Online Broker that offers the widely used "Brokerage in a Box" API for trading platforms and digital advisors acquires Rho to enhance its white label product offering.

 

Dan-Raju-Tradier-Picture1

Charlotte, North Carolina – March 18, 2021- Tradier, a leading online broker and provider of the widely used "Brokerage in a Box" API for trading platforms, advisors, developers, and individual investors, today announced the acquisition of Rho( https://www.rho.trade/), a popular active trading mobile app that made a name for itself with its simplified onboarding and commission-free trading interface. As part of the acquisition, Rho's technology and customers will be integrated into Tradier's products. Existing and new clients will have access to a next-generation white-label mobile offering. 

Houston-based Rho was founded in 2018 as a commission-free app for investing in stocks, ETFs, equity options, and index options. The Rho mobile platform has gained a sizable market presence over the years due to its ability to not only serve first-time traders but also empower traders who look for more advanced features than trading apps like Robinhood. Rho's founder Andre Norman and his team have built an intuitive and robust platform from the ground up, and the Rho IP includes innovative workflows that can give retail investors a trading edge. Andrew Norman will be joining the Tradier management team as SVP of Growth. The acquisition is intended to unleash a powerful commission-free white-label mobile experience to existing Tradier clients and new partners, including large social brands looking to offer embeddable investing capabilities. 

"While API-based investing integrations are at a record high, there is a mounting demand for pre-built embeddable, mobile platforms for quick launch from clients," said Dan Raju, CEO of Tradier. "The pandemic has accelerated retail trade volumes and adoption of mobile by active traders. New and existing companies are all looking to offer commission-free mobile platforms or nested investment capabilities within their apps in mass numbers. We believe this acquisition will enable the distribution of Rho's signature platform to a large audience to match Rho Financial's original mission."

"Tradier has served Rho as a Brokerage Partner for years. We are excited to continue on our mission to democratize commission-free mobile experiences as a part of the Tradier team," said Andre Norman, Founder, and CEO of Rho. "Together with Tradier, we look forward to continuing to change the way brokerage services are delivered and consumed by Traders." 

For more information, please contact sales@tradier.com 

###

About Tradier

Tradier’s Brokerage platform and API’s enable entrepreneurs, businesses, developers to rapidly create and offer embeddable investing to investor platforms, digital advisors and global firms who want to get access to the US Markets. Created by longtime tech developers, Tradier's APIs power third-party firms and developers to offer trading in all US listed securities and build research, analysis, web, social and mobile experiences as self-directed or digital advice(robo) platforms.

About Tradier Brokerage Inc.

Tradier Brokerage, Inc. — a member FINRA and SIPC is an independent subsidiary of Tradier, Inc. Tradier Brokerage with its web, mobile, desktop and API platforms enables online investing and advanced trading for active traders, advisors and platform partners globally at simple and competitive prices.


Tiblio partners with Tradier to bring powerful tools, thoughtful education, and no per-trade or per-contract execution fees
By - Dan Raju, CEO at Tradier on Mar 15, 2021 at 10:32:54 AM

Charlotte, North Carolina – March 9, 2021 — Tiblio, in partnership with Tradier, is pleased to announce the launch of the integration to provide the rapidly growing retail options trading market with an intuitive combination of education, community, cost savings, and powerful tools. Traders who subscribe to Tiblio have access to proprietary, pre-built and configured option screeners for long calls, long puts and vertical credit spreads screeners built with traders in mind. In addition to this Tiblio users have unlimited commission-free options trading from Tradier Brokerage. The collaboration with Tradier aligns with Tiblio's mission to democratize access to the booming retail options market while empowering traders to be successful.

Over the last two years, retail options trading has become a dominant force in the markets' trends and reactions. Existing retail traders are adopting options as a primary investment instrument, and millions of new first-time investors are starting their online investing with options. This has created a massive demand in the market for pro-level options screeners and educational tools. Tiblio plans to address this demand with its innovative platform and partnership with Tradier.

"Tiblio was created by successful traders that have been through this journey and understand what traders need and the support they aspire to have. Today, Tradier is the home for some of the most advanced active traders in the market with its powerful execution, great technology API, and a brokerage stack built to support our mission of retail enablement." said Leon Smith, CEO/Partner at Tiblio Inc.

"Tradier is proud to partner with innovative companies and a great platform like Tiblio that are bringing measurable value to online retail investors," said Dan Raju, Co-founder and CEO of Tradier. "Together, we are changing the way retail investment is delivered, where retail traders have access to great platform alternatives and better capabilities than the existing vertical offerings in the market."

About Tiblio, Inc.

Tiblio is a rapidly growing empowered community that has access to thoughtful investment tools that provide an edge to investors and an ever-expanding digital educational library for active options traders. Tiblio screens the options market for credit spreads, naked puts, long calls and more. Tiblio monitors market moves, daily, and alerts you to options price changes. Tiblio also offers a Trade Log to track your trades and measure performance over time.

About Tradier Brokerage Inc.

Tradier Brokerage, Inc. — a 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 Tradier, Inc.

Tradier, Inc. is a cloud-based financial services provider and brokerage API company that offers a groundbreaking platform to serve Platform Providers, Advisors, Developers and Individual Investors. Tradier delivers an innovative set of fully hosted API's, modules and "out of the box" tools that are leveraged by a growing list of providers seeking to create innovative trading and investing experiences.

Created by developers, Tradier is a technology linchpin that works with organizations that want to democratize access to data, trade execution, low cost trading and market connectivity through cloud access. In addition, Tradier's APIs empowers third-party developers to build applications such as algorithmic and robotic trading systems.

The Tradier solution features REST-based and Streaming APIs, and turnkey tools that deliver speed, choice and simplicity – all on a secure platform.

Contacts:

Media Relations:
press@tradier.com


Market Report Markets Battle Nasdaq Looks Weak
By Todd Horwitz on Mar 15, 2021 at 2:46:27 AM

 Market Report: Markets Battle Nasdaq Looks Weak

By

 

Todd Horwitz Chief Strategist BubbaTrading.com

Be Prepared not Surprised.

As we look at the action last week market trends looked like they were shifting. There seemed to be a real possibility that the bull market was over. However, Tuesday started another rally taking the Dow and Russell to new highs while the S+P was close. However, the Nasdaq was weak and could have been a lower high, meaning lower prices are ahead.

We do not predict markets; we react and watch the price action. There have been many mixed signals including lousy volume on the big rallies last week. There are many factors and a case can be made for the bulls as well as the bears. The price action will lead the way. Those who try to predict what is next are usually wondering why they lost their money.

The options continue to signal more bullish action ahead, for the 20th week in a row call buying has led the way. The rest of the top five strategies are mixed between bullish and bearish. However, one important thing to remember, trades are made for various reasons. The long call buys could be covering up shorts, this is what makes the price action so important.

The bullish symbols continue to repeat with this week being no different. The leaders this week were GME, TSLA, DKNG, BA and SQ. The bear side is definitive with the SPY, SPX, XLF, XLE and XOM. Those are all S+P or oil stocks, which can lead to a sell off. It is certain to be an interesting week. We will be ready to react to what the market offers.

Todd “Bubba” Horwitz

BubbaTrading.com


The Neglected Bunch: What the Most Active, Successful Traders Look for in a Trading Platform
By - Dan Raju, CEO at Tradier on Mar 12, 2021 at 11:26:29 AM

Article on NASDAQ by Dan Raju, CEO of Tradier

  The last five years have seen a massive disruption in how brokerage services are being delivered and consumed. We have seen the entry of 10 million new aspiring investors who want to try, invest and gain stock market access. Commission-free apps for new retail participants have been a central focus of the brokerage industry over the last 24 months. While these platform’s monetization models have been a focus of the conversation, what is abundantly clear is the success of the brokerage firms in attracting these new retail investors with their free apps and free stock incentives. The users of these apps trade an average of 0-3 times a month and carry less than $1000 of cash and positional value in their accounts.

 
 In all the focus on new retail investors, the industry has overlooked the “Active Retail Trader” who trades an average of 10 plus times a month. Unfortunately, this segment gets no attention or focus more recently. This segment is responsible for 80% of the volume and 75% of the revenue that this industry generates. These active traders look for a different set of features and have different sensitivities than the first-time investor. I recently spoke to some of the CEOs of client firms who offer active trading platforms, and I found some remarkably interesting things that we all might need to pause and take notice of.

Prefer Better Execution Over Commission: While this segment is happy to get commission-free trading, they want good fills and best execution. When your trade is valued at thousands of dollars, a few dollars of savings on commissions is not a top priority. They want transparent best execution. Subscription-based pricing seems to be the right balance and extremely popular among active traders. This model gives the active trader, quality execution and caps their commission spend. We see active traders choosing subscription-based services in droves.

Better Real-Time Data: For Active Traders, data is vital. These traders are active all day looking and acting on prices. They need real-time data at their fingertips. They need all their tools to be powered by real-time data. Delayed data will just not cut it for them. They are looking for advanced Level 1 and Level 2 streams of real-time market data rather than fundamental prices.

This Active Trader Group Has Become Options Centric: Most of the active trader segment executes options and in most cases its more than 50% of their volume. The volatile markets of 2020 along with the remote worker environment due to the pandemic has contributed to active trading and specifically active options trading in a big way. They are constantly looking to connect, collaborate and get better at their options trading skills.

Best Tools: They are tool hungry and are looking for an edge. Advanced Charts are in great demand. Risk Analysis tools are also extremely popular. They are looking for risk analysis tools for options, spreads, strategies, and overall positions. They crave trade simulation and back testing. They want to have a good grip on both implied and historical volatility and will crave to price options across different expirations. Support for Advanced Orders is also high. Being able to trigger and schedule future orders intuitively and manage their exits is in great demand. This massive interest from traders has led to the growth and launch of hundreds of such comprehensive platforms.

Education and Mentorship: Active Traders love education and ongoing mentorship This education typically fuels their trading fire. They are constantly on the lookout for great content, virtual trading rooms and educational courses. What we found is that the majority of active traders either subscribe to an educator, content provider or attend or engage with a trading room or a community of some sort. Many educators are offering their own trading platforms and becoming one-stop-shops for Education, Community and Education.

 

Market Report Indexes and Metals turn Ugly
By Todd Horwitz on Mar 8, 2021 at 6:09:58 AM

 Market Report Indexes and Metals turn Ugly

By

 

Todd Horwitz Chief Strategist BubbaTrading.com

Be Prepared not Surprised.

It has been a long time since the major indexes have looked this bad. We have seen a trend reversal in all indexes except for the Dow futures. Bonds continue to be ugly sending the FED a message to quit with the QE and let interest rates rise. Metals have fallen under heavy pressure, in other words where are the safety plays.

The big question here: Is the Bull Market over? There is no real answer to that now, we can say the trend is lower and the possibility that it is over exists. However, the past 10 weeks the number one option strategy has been call buying which on its bullish. You must remember, we don’t know the reason for the call buying, it could be to create a synthetic put or cover up dome shorts.

As we look at the top 10 list of option strategies used last week, after number 1 call buying the next four are bearish, bear calls, long puts, bear call spreads indicting more of a bearish tone. However, the price action will confirm.

The bull symbols trading are still in tech, AAPL, DKNG, SQ and PYPL lead the way. The bearish side is a potpourri of SPY, QQQ, NUGT, XSP and SNDL. There are many things in play here with warning signs galore, is the bull market over

Patience and discipline are always the best strategies.

Todd “Bubba” Horwitz

BubbaTrading.com


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, CEO at Tradier 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/

 

 

 

 



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