Options Market Signals 2007-Like Crash Risk

Although US equity prices have demonstrated a remarkable propensity to completely disregard apparently unimportant things like macro fundamentals, forward earnings estimates, and top-line growth projections, we’ve long argued that eventually, reality will come calling and the farther stretched valuations become in the meantime, the more painful the correction will be.…

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The Trend Will Always Be Your Friend

Technicals matter.  Every investor pays attention to technicals, and that’s why they matter.  Don’t let anyone tell you different.  “The trend is your friend”. Market moves can be characterized as “self fulfilling prophecies”: a prediction that causes itself to become true due to positive feedback between belief and behavior.  If…

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