Weekly Perspectives: As It Pertains To Learning Trading

Weekly Market Outlook For September 21- 25, 2020 – Unwinding The Gamma Squeeze
September 19, 2020
Weekly Market Outlook For Sept. 28 – Oct. 2, 2020 – Exit Q3 / Enter Q4
September 26, 2020
Show all
Weekly Perspectives:  As It Pertains To Learning Trading

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Here is your weekly newsletter — perspectives on trading and financial markets.

Click here for the previous edition.    


 

Unwinding The Gamma Squeeze 

This past week the markets continued to slide lower as the fallout from the unwinding of the massive “gamma squeeze” saw many of the popular high beta tech names hit correction levels.

The end of the trading week was punctuated by a wild Friday session as quad-witching amplified the intraday volatility.

Notably, with 2 trading weeks remaining, the former high flying QQQ’s have now formed an outside month and this leaves open the possibility of the current weekly “momo down” condition to carry over onto the monthly charts.

For the month it’s interesting to note that the IWM is now outperforming the QQQ however if recent history is any indication this likely is not a sign of confidence.

In this week’s video I discuss the following topics:

  • Identifying broadening formations 
  • Understanding market structure and remembering that candlesticks are just a way of representing price 
  • A review of the FAANGM names 
  • Sector by sector review 
  • Stocks I’ll be watching this coming week


Now watch this week’s Weekly Outlook video to see the setups and levels we’ll be watching as well as the technical outlook for the VXX SPY QQQ IWM DIA EEM TSX TLT GLD MGC BTCUSD EEM and more for the week of Weekly Market Outlook For September 21 – 25 2020.

 

200 Years of the United States Stock Market in One Graph

A lot of interesting insights can be derived from this one single chart.

What stands out most for me is how at one time the Financial and Transports sector were once the largest sectors in the US stock market.

Who would have guessed that the largest sector of the nineteenth century, Transports, would lose its classification as a sector by the twenty-first century?

Source: Global Financial Data
 

 

The Day Oil Traded Below 0

Seems like many moons ago now but back on April 20, 2020 we saw a rather historical event when the US crude oil futures contract briefly traded below 0 and then traded in negative territory before it settled at minus $37.63. 

Many months later it has emerged that one UK firm pocketed close to $500 million that one single day while a slew of other trader and funds were left licking their wounds.  

Here is the story behind the casualties and class actions behind one of the wildest trading sessions in crude oil futures history.  

 

As It Pertains To Learning Trading … 

“Teaching and learning in this context should not be understood as one of transmitting knowledge but instead as one of cultivating habits.”

– Michael Dufresne

Stay strong, and happy trading!

Houston

PS – Were you forwarded this email? Subscribe here.

PPS – Don’t forget to join us on our Facebook Group and exchange trading ideas between meet-ups – https://www.facebook.com/groups/montrealtraders/

 

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Weekly Perspectives: As It Pertains To Learning Trading

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