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Showing posts from October, 2022

High-Yield Bonds

High-yield bonds, commonly known as junk bonds, have lower credit ratings than investment-grade bonds, which causes them to have higher interest rates. Due to their increased default risk, high-yield bonds reward investors with a larger yield than investment-grade bonds. High-yield debt is typically issued by start-up businesses or capital-intensive organizations with high debt ratios. However, some high-yield bonds are fallen angels, or bonds that lost their stellar credit ratings.

Dark Pool

A dark pool is a privately run financial marketplace or exchange where securities can be traded. Institutional investors can trade through dark pools without being exposed until after the trade has been completed and disclosed. Dark pools are a kind of alternative trading system (ATS) that provide some investors the chance to make trades and place huge orders without disclosing their intentions to the public while looking for a buyer or seller.

Google Third Straight Disappointing Earnings. Where It Goes From Here...

Alphabet (GOOG -9.6%) led a bearish market charge after reporting disappointing quarterly earnings .  The company missed quarterly EPS projections for the third quarter in a row, as advertisers reduce spending.  We also take at the overall sentiment of the market.  Watch this video to get the technicals and what to expect moving forward.  Good trading!  Trading Risk Disclaimer All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, there is also substantial risk of loss. All trading operations involve high risks of losing your entire investment. You must therefore decide your own suitability to trade. Trading results can never be guaranteed. SharperTrades, LLC is not registered as an investment adviser with any f

Theta

Theta is the pace at which the value of an option declines with the passage of time. It may also be known as an option's time decay. A as long as everything remains constant, an option loses value as it approaches maturity. Theta can be thought of as the daily drop in value of an option and is typically expressed as a negative number.

Unemployment Rate

The percentage of the labor force without a job. The unemployment rate is a lagging indicator, which means that rather than forecasting changes in economic conditions, it often rises or decreases in response to them. The unemployment rate is likely to increase when the economy is struggling and there are few open positions. On the other hand, it is predicted to decline when the economy is growing and there are plenty of employment available.

Intraday Trading

Short for within the day, the term refers to securities traded on the markets during regular business hours. Day traders and scalpers who place many trades during a single trading session pay close attention to intraday price changes, as well as the bid-ask spread. When the market ends, intraday traders will close out all of their positions. Because of the limited time available to them, precise entries and exits, as well as the price paid to trade, is essential for the success of their trades.

Bitcoin and Ethereum Funds: Two Unusual Activities That Could Result in a Big Move

Today we take a look at the technicals for Bitcoin and Ethereum. The crypto market has been quiet for several months.   On Friday we detected unusual dark pool activities (large block orders) in the Bitcoin Trust Fund and Ethereum Trust Fund, GBTC and ETHE respectively. When smart money know something, they place large orders in the dark pool exchanges, away from the public eye. By doing so, they are positioning themselves ahead of the crowds, in order to benefit from move that will follow, once the news or report is made public. However, dark pool activities   do not   tell us the direction of the next move. It only tell us that a large order(s) has been placed. Only a breakout (bullish) about a resistance level, or a breakdown (bearish) below a support level can confirm the direction of the next move. So, what can we expect next? Watch this video to find and to get the technical insights.  Good trading! Trading Risk Disclaimer All the information shared is provided for educational

Kal's Option Trade of the Week - SLV Vertical

  This week we are doing something a little different.  We are starting with an assumption that we believe Silver (SLV) will continue upwards in the short term.  While usually we would look to trade around the 45 day window and let duration beat direction, we are making a different assumption this time.  We are betting on a short term continuation of silver to the upside.  So we will shorten our timeframe to the closest expiration cycle above 30 days and look to manage this trade more aggressively, if it shows a profit in the next couple of weeks.  Watch this video to get the trade details and learn. Hope you enjoy it! Kal Trading Risk Disclaimer All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, there is al

Corporate Social Responsibility (CSR)

Self-regulating business model that helps a company be socially accountable to itself, its stakeholders, and the public. By practicing corporate social responsibility, also called corporate citizenship, companies can be conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental. To engage in CSR means that, in the ordinary course of business, a company is operating in ways that enhance society and the environment instead of contributing negatively to them.

Quantitative Analysis (QA)

Quantitative analysis (QA) is a method for comprehending behavior that makes use of mathematical and statistical modeling, measurement, and study. Quantitative analysts translate a certain reality into a numerical value. Measurement, performance assessment, financial instrument valuation, and the forecasting of actual occurrences, such as shifts in a nation's gross domestic product, are all done using quantitative analysis (GDP). In business and management, qualitative analysis makes use of subjective judgment to assess a company's value or prospects based on non-quantifiable data, such as management skills, industry cycles, the strength of research and development, and labor relations. In comparison to technical analysis which focuses on charts analysis, technical indicators and study of support and resistance levels, quantitative analysis focuses on data reports like balance sheets, instead. However, the two methods are frequently combined in order to assess a business' o

Delta

A risk metric that calculates the price change of a derivative, like an options contract, given a $1 change in the underlying securities. Additionally, the delta informs options traders of the hedging ratio needed to achieve delta neutrality. The likelihood that an option will expire in the money is a third way to understand an option's delta. For instance, if a call option has a delta value of +0.45, it means that, all other things being equal, if the price of the underlying stock rises by $1 per share, the option on it will rise by $0.45 per share. Depending on the type of choice, delta values might be either positive or negative.

Leading Indicator

Any quantifiable or observable variable of interest that foretells a change or movement in another data series, process, trend, or other event of interest before it occurs.. Market watchers and policymakers can predict important changes in the economy with the aid of leading economic indicators, which are used to forecast changes before the rest of the economy starts to move in that direction. Leading indicators can be helpful in predicting the onset, scope, and course of future business and economic conditions. A lagging indicator and a leading indicator can be compared. The five main leading indicators are the Treasury yield curve, durable goods orders, stock market major indices, manufacturing jobs and building permits.

Growth Stock

Any stock in a company that is expected to increase in value much faster than the market as a whole is considered a growth stock. Typically, these stocks don't pay dividends, as they typically seek to reinvest any earnings they generate to promote growth in the short term. When investing in growth companies, investors hope to profit from capital gains when they eventually sell their shares in the future.

Government Bond

A government bond is a type of financial security issued by the government to fund its spending and obligations. Periodic interest payments on government bonds are known as coupon payments. Government bonds issued by national governments are frequently seen as low-risk investments because the issuing government guarantees them. Sovereign debt is another name for government bonds.

Liquid Market

A market is said to be liquid if it has a large number of buyers and sellers and relatively low transaction costs. Depending on the asset being traded, many factors may contribute to market liquidity. A deal can be completed quickly and at a favorable price in a liquid market because there are many buyers and sellers, and the product being traded is standardized and in great demand. Despite daily variations in supply and demand, the difference between what a buyer wants to pay and what a seller will accept is typically quite minimal in a liquid market.

Capital Gain

The difference between a security's purchase price and its selling price, when the difference is positive. The profit made on the sale of an asset whose value has improved throughout the holding term. A car, a business, or tangible or intangible property like shares are all examples of assets. Only when the asset's selling price exceeds its original acquisition price is a capital gain feasible. A capital loss happens when the buying price is higher than the sale price. Taxation on capital gains is common, and rates and exemptions may vary between nations. A variety of economic philosophers have characterized the evolution of capital gain, which began at the inception of the modern economic system, as complex and diverse. The idea of a capital gain may be compared to other important economic ideas like profit and rate of return, but it differs from those ideas in that anybody can accumulate capital gains via the routine acquisition and disposition of assets, not just corporation

Unrealized Loss

Unrealized losses are paper losses that happen when an investor hangs onto an asset whose value has dropped without selling it and recognizing the loss. In the event that an asset's price does eventually rise, an investor can choose to postpone realizing a loss in the hopes of at least breaking even or making a little profit. For tax purposes, a loss must be realized before it may be used to offset capital gains. Unrealized gains and losses can be compared to realized gains and losses.

Shareholder

Any individual, business, or organization that holds at least one share of a company's stock or unit in a mutual fund is referred to as a shareholder. The firm is primarily owned by its shareholders, who have specific rights and obligations and will also benefit from the company's success. These benefits take the form of rising stock prices or cash gains paid out as dividends. In contrast, when a corporation experiences a loss, the share price invariably falls, which may result in financial losses for shareholders or declines in their portfolios.

Netflix Explosive Earnings and Market Update. Watch Video

Netflix reported better-than-expected earnings , beating on revenue and sending the price up 17% in the post market. We also take at the overall sentiment of the market. Watch  this video  to get the technicals and what to expect moving forward. Good trading! Trading Risk Disclaimer All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, there is also substantial risk of loss. All trading operations involve high risks of losing your entire investment. You must therefore decide your own suitability to trade. Trading results can never be guaranteed. SharperTrades, LLC is not registered as an investment adviser with any federal or state regulatory agency. This is not an offer to buy or sell stocks, cryptos, forex, fu

Job Market

The job market, also known as labour market, is the place where both employers and job seekers conduct their searches. The job market is a term that illustrates the competitiveness and interaction between various labor forces rather than a physical location. Depending on the availability and demand for labor within the larger economy, the job market may expand or contract. The demands of a particular industry, the requirement for a given degree of education or skill set, and necessary job tasks are other market-influencing elements. A important part of any economy is the job market, which is closely related to consumer demand for goods and services.

Risk/Reward Ratio

The risk/reward ratio identifies the potential return an investor can expect to receive for each dollar they risk on a particular investment. Many investors use risk/reward ratios to evaluate the projected rewards of an investment with the level of risk they must incur in order to attain these returns. For example, an investment with a risk-to-reward ratio of 1:4 indicates that the investor is willing to risk $1 in exchange for the chance to make a $4 profit.

Unrealized Gain

An increase in the value of an asset that has yet to be sold for cash, such as a stock position, an option contract or a commodity. Once the position is sold for a profit, a gain is realized. If the asset's value falls below the price at which it was purchased, an unrealized gain may be erased, and will turn into an unrealized loss. When the equity is sold and the position is closed, only the it will result in a real loss.

Dividend Yield

The annual percentage return that a mutual fund earns. Divide the annual dividend per share by the current net asset value or public offering price to get the yield.

Yield

Annual percentage rate of return on capital. The dividend or interest paid by a company expressed as a percentage of the current price. "Yield" refers to the earnings generated and realized on an investment over a particular period of time. It's expressed as a percentage based on the invested amount, current market value, or face value of the security. Yield includes the interest earned or dividends received from holding a particular security. Depending on the valuation (fixed vs. fluctuating) of the security, yields may be classified as known or anticipated.

Market Sentiment

Market sentiment describes how generally investors feel about a specific security or financial market. It is the mood or tenor of a market, or the psychology of the public, as seen in the activity and fluctuation of the prices of the securities traded in that market. In general, rising prices are influenced by bullish market sentiments, whereas declining prices are influenced by bearish market sentiments.

Derivatives

A type of financial contract whose value is based on an underlying asset, group of assets, or benchmark. A derivative is an agreement made between two or more parties who can trade over-the-counter or on an exchange (OTC). These contracts have their own risks and can be used to trade a wide range of assets. Derivative prices are based on changes in the underlying asset. These financial instruments can be traded to reduce risk and are frequently used to get access to specific markets. Derivatives can be used to either accept risk with the intention of receiving a similar reward or to mitigate risk (hedging) (speculation). The risk-averse can transfer risk (and the associated profits) to the risk-takers using derivatives.

Money Market Mutual Fund

A short-term investment that invests in Treasury bills, CDs with maturities under one year, and other conservative investments in an effort to preserve principal while generating income.

Market Capitalization

The market capitalization of a firm is the sum of the dollar values of its outstanding shares of stock. The size of a corporation is determined by this number rather than revenue or total assets, according to the investment community. Market capitalization is used in acquisitions to assess if a takeover candidate offers a good value to the acquirer or not.

Breakpoint

The sum of money required to buy shares in a load mutual fund that entitles the investor to a lower sales charge. Breakpoints give investors a discount in exchange for making bigger bets. Either a lump sum payment or spaced installments over a predetermined time period may be used to fund the purchase. A letter of intent must be used to support the latter type of investment acquisition in a fund (LOI). Breakpoint discounts reduce the front-end sales load for Class A mutual fund investors. Discount depends on amount invested in a fund family. A mutual fund may impose a 5.75 percent front-end load for share purchases under $50,000, 4.50 percent for transactions between $50,000 and $99,999, and reduce or eliminate the load for greater assets. Investors can reach breakpoints with a single purchase of Class A mutual fund shares, a Letter of Intent (LOI), or rights of accumulation (ROA). An LOI allows investors to earn breakpoint discounts for committing to acquire a certain number of sh

Bar Charts

Bar charts are made up of many price bars that each show how the price of a security or asset changed over a specific period of time. Bar charts are called different names depending on the values displayed. When the bar chart displays the high, low, and close prices it's called HLC bar chart. HLC charts are less commonly used. When the bar chart displays the open, high, low, and closing prices, it's called OHLC chart. OHLC bar chart is more popular and useful compared to HLC bar chart as it displays all four price values. Understand Bar Charts Each bar in a bar chart represents the price fluctuations over a specific time interval. Each bar's vertical line represents the range of prices seen within the time frame represented by the bar. A thin horizontal line to the left of the vertical line line indicates the opening price; a thin horizontal line to the right of the vertical line indicates the closing price. The bar will be green (or white) if the closing price is higher th

Premium

In finance, premium can mean many things. It most frequently refers to the following definitions. A security is often trading at a premium when it is priced higher than its theoretical or intrinsic worth (in contrast to a discount). If the price paid for a fixed-income security is greater than par, the distinction between that price and the security's face amount is referred to as a premium. Premium also refers to the cost of purchasing an insurance policy or the recurring payments that an insurer requires to offer coverage for a specific amount of time. Finally, the premium is the full cost of purchasing an option contract.

Market drops, recovers and runs. Is it rally time? Watch video. Plus a watch list

Today the market was a roller coaster. Prior to the open, all indices were down almost 3% following a discouraging September CPI report, showing inflation up 8.2% from the same month last year. Despite the disappointing numbers and the heavy premarket drop, after the opening, things started to take a positive turn. By the end of the day, all indices were up almost 3%! Today's price action displayed the same pattern formation across all indices: a bullish engulfing, which is potentially indicative, of the beginning of a bullish reversal. Now, inflation still runs high, the Feds are nuts and things are still a mess out there. So caution is still a requirement. However, there's hope. Let's see what happens next.  Watch this video to get the technicals and what to expect moving forward. Good trading! Trading Risk Disclaimer All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own r

Startup

Startup refers to a business that is just getting started. Startups are created by one or more business owners who desire to provide a good or service they feel there is a market for. These businesses typically have large startup expenses and little income, which is why they seek funding from a number of sources, including venture capitalists.

Equities

Shares of stock that a corporation issues to signify ownership. Ownership of real estate, as opposed to fixed-income products like bonds or mortgages, typically in the form of common stocks. Depending on the fund's investing aim, stock funds can differ.

Stock Screener

A set of tools that enables investors to easily sort through the thousands of companies and growing number of exchange-traded funds (ETFs) available in the stock market, using investors' chosen criteria. Most brokerage trading platforms offer free stock screeners. However, for those investors looking for platforms that provide more in-depth scanning features, several independent subscription-based stock screeners are also available. Stock screening tools let individuals use their own criteria for finding stocks or ETFs that can be attractive for long-term investors, or identify prospective opportunities for shorter-term traders.

Vertical Spread

A vertical spread is the simultaneous purchase and sale of options of the same kind (i.e., puts or calls) and expiration date, but with different strike prices. The position of the strike prices is where the name vertical originates. In contrast, a horizontal spread, also known as a calendar spread, involves the simultaneous purchase and sale of an identical option type with an identical strike price but a different expiration date.

Global Fund

A global fund is a fund that makes investments in businesses operating anywhere in the world, including the investor's own nation. A global fund looks to pick the top investments from among a variety of assets available worldwide. Passively managed global funds are also possible. A global fund may be invested in various asset classes or just one specific asset class.

Gamma

Gamma is the rate of change in an option's delta per 1-point move in the underlying asset's price. Gamma is an important measure of the convexity of a derivative's value, in relation to the underlying. A delta hedge strategy seeks to reduce gamma in order to maintain a hedge over a wider price range. A consequence of reducing gamma, however, is that alpha will also be reduced.

Kicker Candlestick

A reversal candlestick pattern made of two candles with the opening price of each candle occurring around the same price level, but moving in the opposite direction. The trend suggests a significant shift in investors' perceptions of a security. This major shift in market sentiment typically takes place after important information about a company, sector, or economy is made public.

Municipal Bonds

A municipal bond, sometimes referred to as munis or muni bonds, is a type of debt instrument issued by a state, municipality, or county to pay for capital projects like building roads, bridges, or schools. They can be compared to loans given to local governments by investors. Municipal bonds are particularly appealing to those in higher income tax brackets because they are frequently exempt from federal taxes and the majority of state and local taxes (for residents).

Default

Default occurs when necessary interest or principal payments are not made, whether the debt is a loan or a security. Debt commitments can be ignored by people, companies, and even entire nations. For creditors, default risk is an essential factor. Failure of a debtor to make timely payments of interest and principal as they come due or to meet some other provision of a bond indenture.

Contrarian

In a contrarian investment strategy, investors deliberately buck the direction of the market by selling when others are buying and purchasing when most investors are selling. Warren Buffett, chairman and CEO of Berkshire Hathaway, is renowned as a contrarian investor. Investors who hold a contrary opinion think that people who claim the market is rising only do so when they are completely invested and have no more purchasing power. The market has reached its pinnacle at this time. Therefore, when forecasters foresee a decline, they have already sold out and the market can only rise from here.

Market-On-Close (MOC)

Non-limit market orders that traders execute as closely as possible to the closing price—either precisely at or just after the market close. Obtaining the final price of that trading day is the goal of a MOC order. MOC orders are not offered by all brokers or in all markets. Traders must place a MOC order by 3:45 p.m. EST on the New York Stock Exchange (NYSE) and by 3:50 p.m. EST on the Nasdaq, as both exchanges close at 4:00 p.m. EST. Both exchanges prohibit traders from changing or canceling MOC orders after those specified times.

Gross Domestic Product (GDP)

The total monetary or market worth of all the finished goods and services produced within a nation's borders during a certain time period is known as the gross domestic product (GDP). It serves as a thorough assessment of a particular country's economic health as a wide indicator of entire domestic production.

Money Flow

Technical indicator calculated by averaging the high, low, and closing prices, and multiply that average value by the daily volume. Traders can determine whether money flow was positive or negative for the current day by comparing that result to the number from the prior day. While negative money flow signifies that prices are expected to decline, positive money flow says that prices are likely to move higher.

Benchmark Index

A group of securities used for comparison when evaluating the performance of a mutual fund or portfolio. Benchmark Index is typically a standard and unmanaged index used to gauge the performance of other equities or securities on the market. Benchmark indices include the Dow Jones Industrial Average, the S&P 500, or the Russell 2000. Understanding Benchmarks The performance of a stock, fund, or any other investment of the same industry and composition can be measured against market benchmarks, which are indexes comprised of several securities, assets, or instruments. All different kinds of asset classes have their own respective benchmark indexes. In the equities market, some of the most widely used benchmarks are the S&P 500 and the Dow Jones Industrial Average, both of which measure the performance of large-capitalization stocks. Share Price Indices Standard & Poor's is responsible for constructing the S&P 500. It tracks the performance of the top 500 stocks on th

Scalability

Scalability is the capacity of a system, such a computer network, or an organization to function effectively under an expanding or increased workload. A well-scaled system will be able to maintain or improve its level of performance even when it is put to the test by increasing operational demands. In the business sector, a scalable company is one that can maintain or enhance its profit margins as sales volume rises. Scalability in financial markets refers to an institution's capacity to meet rising market needs.

Commodity

Basic good that used in trade and can be exchanged for other items of the same kind. The majority of the time, commodities are utilized as raw materials to create other products or services. Therefore, a commodity is typically a raw resource utilized to create completed goods. Contrarily, a product is the finished good that is offered for sale to customers. A commodity's quality may slightly vary amongst producers, but it is generally the same. Commodities, usually referred to as base grades, must also satisfy specific minimum requirements in order to be traded on an exchange.

Double Top

Bearish technical reversal pattern formation that develops after hitting a resistance of level of high prices twice and failing to break above them. This pattern formation oftentimes displays a slight decrease in price between the two highs. The confirmation comes when price is not able to break above those highs, it pulls back, breaks below recent support levels and starts to drift lower. When that happens, it becomes conclusive that price is an a downtrend.

Over the Counter (OTC)

Trading stocks over-the-counter (OTC) means doing it through a network of broker-dealers rather than on a centralized exchange like the New York Stock Exchange. Stocks, bonds, and derivatives, financial contracts whose value is derived from an underlying asset like a commodity, can all be traded over the counter. Securities of companies that do not fit the criteria to list on a standard market exchange, such as the NYSE, can still be traded OTC but may still be subject to Securities and Exchange Commission regulation.

Daily Chart

A daily chart is a graph that shows the price movement of a securities over the course of a single trading day. Charts using bars, candles, or lines are frequently used to represent these data values. A daily chart and a weekly chart can be compared.

Trailing Stop

A trailing stop is a variation on a standard stop order that can be put at a specific percentage or dollar amount distant from a security's current market price. Trailing stops are generally used to lock in profits after an asset's price as reached the investor's desired level. For reference, a trailing stop loss on a long investment (or trade) is placed below the current market price, where a trailing stop is placed above the current market price for a short sell type of trade or investment.

Lagging Indicator

A lagging indicator is an observable or measurable element that changes after the connected economic, financial, or business variable changes. Trends and changes in trends are confirmed by lagging indicators. Lagging indications, such as MADCs, RSI, stochastics, can be helpful for determining the direction of the overall economy. However, while providing useful information, lagging indicators are less reliable when compared to leading indicators, such as yield curve, durable goods orders and manufacturing jobs. It is important to understand that when analyzing a trend, we need to look at the whole picture (price, time, volume), not just one or two indicators.

Stop-Loss Order

A stop-loss order is a type of order that traders use to cap their losses or lock in a profit on an existing position. By using stop-loss orders, traders can limit the amount of risk they are exposed to. Stop-loss orders are instructions to exit a trade by purchasing or selling a security at market value when it hits the stop price. Bear in mind that stop-loss orders only get triggered during regular market hours. If price drops below a certain level during extended market hours (premarket or post market) the stop will not get triggered. In other words, stop loss orders do not remove the risks associated with holding positions overnight.

Reversal

A reversal is a change in the direction that an asset's price is moving. Either an upward or downward reversal can happen. Following a significant price increase, a downward trend reversal could be expected. The opposite is true, that following a steep decline in price, a trend reversal could take place. Reversals usually don't depend on a single period or two bars on a chart; instead, they depend on the general price direction. Some indicators, like a moving average, oscillator, as well as support and resistance levels, such as trend lines, channels and other technical patterns, may be useful for identifying trends and reversals.

Free Cash Flow (FCF)

Free cash flow is the amount of money a company has left over after paying for operational costs and capital asset maintenance (FCF). In contrast to earnings or net income, free cash flow is a measure of profitability that accounts for both spending on assets and equipment as well as changes in working capital from the balance sheet. Non-cash expenses are also taken out of the income statement.

Blue Chip

A high-quality, comparatively low-risk investment; the term typically refers to the stocks of sizable, well-known businesses that have delivered positive results over a protracted period of time. The phrase "Blue Chip" is taken from poker, where the most valued chips are blue. Overview Blue-chip stocks are from well-known, reliable companies, such as Nike, Coca-Cola, Boeing, Visa. Blue chips have a significant market valuation, a major stock exchange listing, and a history of dependable growth and dividends. Blue-chip stocks have an established track record of performance and consistent growth. Blue chips are stable but don't earn as much profit as riskier investments. Blue-chip stocks are not impervious to failure, just like what happened with Lehman Brothers or General Motors during the financial crisis.

Dividend Reinvest NAV

Dividends given to the shareholder of record that are automatically reinvested in further securities or mutual funds at the security's net asset value.

Is the Market Ready for a Bounce? Also Twitter and Elon Musk in the News Again!

Stocks rallied for a second day.  The major indices opened higher and never really lost ground, closing near the high of the day. The  S&P 500, Nasdaq Composite, and Dow Jones Industrial Average rose more than 5% in the last two sessions. Hopes that the Fed will slow rate hikes is what drove today's upside momentum. Is market ready to rally? Also Twitter and Elon Musk in the news again! Watch this video to get the technicals and what to expect moving forward. Good trading! Trading Risk Disclaimer All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, there is also substantial risk of loss. All trading operations involve high risks of losing your entire investment. You must therefore decide your ow

Risk

Financially speaking, risk is the possibility that the results or returns on an investment will not match expectations. Risk involves the potential for losing all or a portion of the initial investment. Risk is frequently evaluated quantitatively by observing past actions and results, and take them into account. A frequent statistic metric used to measure risk in finance is standard deviation. The standard deviation gives a measurement of how volatile asset prices are in relation to their average historical values over a specific time period.

Renewable Energy Certificates (RECs)

A market-based instrument known as a Renewable Energy Certificate (REC) verifies that the holder of the certificate owns one megawatt-hour (MWh) of electricity produced from a renewable energy source. The received REC can subsequently be sold on the open market as an energy commodity after the power provider has supplied the energy into the grid. Earned RECs may be sold, for instance, as a carbon credit to other polluting entities to offset their emissions. Green Tags, Tradable Renewable Certificates (TRCs), Renewable Electricity Certificates, and Renewable Energy Credits are some other names used for RECs.

Annual Report

The annual audited report given to shareholders detailing the health and performance of a company or mutual fund. Public corporations are required to submit an annual report to shareholders that details their business operations and financial standing. The report's front section frequently includes an amazing collection of illustrations, images, and a narrative that describes the company's operations over the previous year and occasionally includes projections for the future. The report's extensive financial and operational information is located in the rear. Reviewing Annual Reports Following the stock market crisis of 1929, Congress imposed standardized corporate financial reporting, which included annual reports being required of publicly traded corporations. The purpose of the annual report is to inform the public about the company's operations and finances throughout the previous year. Shareholders and other interested parties get the report to assess the company&#

Hedge Fund

A hedge fund is a limited partnership of private investors whose capital is managed by experienced fund managers. These managers employ a variety of tactics, such leveraging or trading in non-traditional assets, to generate returns on investments that are higher than average investment returns. Investment in hedge funds is frequently viewed as a dangerous alternative investment option since it typically has a high minimum investment requirement or net worth requirement and frequently targets wealthy clientele.

Growth-Style Funds

Growth funds prioritize prospective gains, and generally focus on company stocks with earnings that outperform the current market. The management makes an effort to succeed by concentrating on rapidly growing sectors and industries, and making investments in well-known businesses that consistently improve their earnings. The fund grows as the share price of their individual company holdings climb.

Greeks

The Greeks are the terms used to refer to the variables that determine risk in the options market. Each of these risks is represented by a Greek symbol. Each Greek variable is the outcome of a flawed assumption or connection between the option and another underlying variable. Different Greek values, including alpha, delta, theta, and others, are used by traders to evaluate the risk of options and manage option portfolios.

Certificate of Deposit (CD)

A type of savings product that accrues interest on a single sum of money for a predetermined amount of time. Unlike savings accounts, CDs require that the money remain untouched over the full term to avoid penalties and lost interest. Savings accounts often provide lower interest rates than CDs as compensation for liquidity loss. The majority of consumer financial institutions provide certificates of deposit (CDs), although each bank is free to set its own conditions, rate of interest in comparison to savings and money market products, and early withdrawal fees.

Breakout

A breakout occurs when the price of an asset crosses above a resistance level or below a support area. Breakouts suggest that the price may begin to trend in the direction of the breakout. A breakout to the upside from a chart pattern, for instance, can signal that the price will begin to trend higher. High volume breakouts (compared to typical volume) demonstrate more conviction, which increases the likelihood that the price will trend in that direction. Overview A breakout occurs when the price breaks a resistance or support level. Not all traders employ the same support and resistance levels, therefore breakouts can be subjective. Generally, breakouts give traders the green light for entering a trade. Upward breakouts signal traders to buy or cover short positions. A negative breakdown suggests traders short or sell long positions. High-volume breakouts reflect conviction and interest, therefore the price is more likely to follow the breakout. Low volume breakouts are more likely