SP 500 and wti oil correlation
At the time of writing, WTI crude oil futures were trading at around $55 a barrel, the lowest level in five years and almost 50% lower than their June high of $107.85

The drop in oil has been fierce and comes amid an economic slowdown in China and a concerted effort by OPEC to maintain low prices, in a bid to compete with the booming US shale market.

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fear index and market timingCourse update: I updated the course with a new white paper called ‘The Fear Index & Market Timing‘. This is a short term trading strategy based on the VIX and the S&P 500 future.

Another week of tumbling oil prices! Tumbling prices mean great opportunities. $58 a barrel?? There are so many cheap oil drillers right now it really is incredible. But don’t buy yet, oh no, there’s a bit more downside to come and then we will be ‘game on’.

But let’s not dwell on cheap oil for too long. Let’s take a look at what everyone has been talking about on the web this week: Read more »


this weeks link roundupStock markets look like they will finish in the green again today after another satisfying non-farm payrolls number. Energy shares are still down though.

I initiated a small position in $TM and $MU earlier in the week. Both trend following positions as the stocks made new highs.

 

Here’s this week’s links:

Paul Krugman on oil and the economy.

6 charts that illustrate Putin’s world of pain.

Avid shares to appreciate following Nasdaq re-listing.

Oil tycoon Boone Pickens predicts return to $100 oil.

Yahoo on track to pass Twitter in ad share.

90% off this stock options course (valid until 10 Dec).

Have a great weekend!


easy money trading

It was November 2008 and I’d been trading full time for only a couple of months.

The credit crunch was in full force and every day presented new challenges and headaches.

Until Lehman Brothers collapsed I had been doing well. Trading on a simulator, I was happily bringing in a reasonable £300 a day.

Then, everything changed. As soon as we went live, the markets went into chaos. The FTSE 100 would drop massively in the space of a couple of minutes. Then, it would reverse almost as fast, for no other reason than traders being too scared to hold on to their shorts. Read more »


I had a few spare moments so I thought I would play around with the Portfolio123 simulator and see if I could come up with any new trading ideas.

Small Cap Investing Strategy Rules

The first thing that came to mind was to look at ideas for small-caps, since smaller companies outperform larger ones over time.

So I decided on a portfolio investing system that buys small cap stocks meeting a certain set of criteria.

I set the system to filter for stocks that had a maximum market cap of $3 billion and a minimum market cap of $100 million.

small-cap-investing setup

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