All articles tagged with #trading strategy
WIF experienced a 24% price drop but is showing signs of recovery, with bullish long-term structure and potential buying opportunities for swing traders, especially if Bitcoin maintains its current levels. However, declining trading volume and short-term bearish signals suggest caution, and traders should watch for a reclaim of key moving averages for confirmation of upward movement.
The article explains the 'TACO' trade strategy, a profitable approach during Trump's tariff threats, which involves buying stocks after dips caused by tariff announcements and selling when markets rebound as Trump delays or backs down, exemplified by recent market responses to tariff threats and delays.
Jane Street is suing two former traders, Daniel Spottiswood and Doug Schadewald, for allegedly taking a lucrative secret trading strategy to hedge fund Millennium, which offered Schadewald a significant pay increase and profit sharing arrangement. The strategy involves analyzing signals and predicting future market activity. Meanwhile, 91-year-old hedge fund legend Edward Thorp shares tips for longevity, including minimizing bad outcomes and regular checkups. In other news, macro trader Ben Melkman is joining Bridgewater, and UBS and Barclays have made hires in the US.
Traders are taking advantage of the "cash and carry" trade with bitcoin following the launch of an exchange-traded fund (ETF). This strategy involves buying the cryptocurrency and simultaneously selling futures contracts at a higher price, profiting from the price difference. The move comes after the recent launch of a bitcoin futures ETF, providing new opportunities for traders in the cryptocurrency market, as reported by the Financial Times.
Zero days-to-expiration options, a trading strategy that allows investors to make one-day bets on market direction, are becoming more accessible to retail investors. CBOE Global Markets and Simplify Asset Management are among the companies offering these options. While they have garnered interest from both retail and institutional investors, experts caution that they may be most effective as a tool for professionals, as retail investors tend to engage in speculation rather than sophisticated trading strategies.
Analysis from trading firm QCP Capital suggests that Bitcoin (BTC) may face resistance around the $35,000 mark, potentially stalling its bull market. The firm highlights the $35,000 to $40,000 range as a popular area for market participants looking to catch a local top. QCP Capital plans to sell end-September $33,000 to $35,000 calls and use the premiums to buy $30,000 puts. The analysis also references the potential lack of volatility cues in the macroeconomic environment and the ongoing speculation surrounding the approval of the first Bitcoin spot-based exchange-traded fund (ETF). Traders are raising concerns about a potential BTC price correction, with a new block of resistance appearing on the Binance order book at $36,000. At the time of writing, BTC/USD is trading near $30,800.
DonAlt, a trader who successfully predicted the 2023 crypto rally, suggests that altcoins are weak and many are trading close to their yearly lows despite Bitcoin's price floor. He advises crypto bulls to accumulate coins with a strong underlying narrative, such as Litecoin and XRP, which he has been trading due to their halving and SEC case narratives, respectively.
Buying the dip, a short-term trading strategy of buying stocks the day after a selloff, is making a major comeback in 2023 with average one-day returns for the S&P 500 climbing to nearly 0.3%. This strategy is on track for its third-best average return ever for a calendar year, and its strongest since 2020. The strategy broke down in 2022 as investors endured wild swings as stocks moved steadily lower. However, several factors have helped the strategy regain some of its lost luster, including the successful debt ceiling extension, the AI boom, and relatively low equity exposure.
Morgan Stanley predicts a 10% drop in European stocks this summer due to concerns over inflation and the end of stimulus measures. The investment bank recommends a trading strategy that involves buying put options on the Euro Stoxx 50 index and selling call options on the S&P 500 index.
Jeffrey Gundlach, CEO of DoubleLine Capital, revealed his trading strategy in the current volatile market, stating that he is focusing on short-term trades and avoiding long-term investments. Gundlach also emphasized the importance of diversification and warned against investing in high-yield bonds.