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Showing posts from November, 2022

Exchange-Traded Fund (ETF)

A pooled investment security that functions very similarly to a mutual fund. ETFs often follow a certain sector, index, commodity, or other asset, but unlike mutual funds, they can be bought or sold on a stock exchange just like normal stocks can. Anything can be tracked by an ETF, from the price of a single commodity to a sizable and varied group of securities. ETFs may even be designed to follow particular investment strategies such as shorts selling.

Retailers strong earnings and Black Friday record sales. And the winner is...

Today we cover Walmart (WMT).  Two weeks ago (11/15), Walmart reported better-than-expected earnings sending the price up 7%. In addition the company announced a new $20B share buyback.  On that day, WMT stock price printed a bullish kicker, one of the strongest reversal candlestick patterns, starting the beginning of the price surge.  During Black Friday, online sales reached a new record hugely benefiting the two major US retailers: Walmart and Amazon.  WMT stock price is now testing some resistance levels. Where will it go from here?  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 a


Resistance, also known as a resistance level, is the level at which the price of an asset experiences pressure as it rises, due to the appearance of an increasing number of sellers who are eager to sell at that price. Resistance levels may be long-lasting or short-lived depending on whether new information surfaces and alters the market's perception of the asset as a whole. Drawing an horizontal line (and at times diagonal lines, known as trend lines) to connect the highs for the time period being considered, allows technical analysts to chart the resistance levels, and make a more accurate price projection. The counterpart of resistance is support.

Moving Average (MA)

Indicator frequently employed in technical analysis with the purpose of generating a price's moving average during a specific period of time. The indicator is made of a single line that displays a continuously updated average price value in order to assist smooth out the price data. Moving average indicators can be simple- and exponential- data driven. The formula for the simple moving average indicator takes into equal consideration the closing price values recorded during a specific period of time (21-days, 50-days...). The exponential version of the indicator does the same calculation as the simple version of the indicator. However the exponential moving average places more emphasis on the most recent price values, making those values more responsive and current to the new information.

Bid-Ask Spread

The difference between the ask price and the bid price for a marketable item is known as the bid-ask spread. The difference between the highest price a buyer is ready to pay for an item and the lowest price a seller is willing to take is known as the bid-ask spread. The person who wants to sell will get the bid price, and the person who wants to buy will pay the ask price. Understanding Bid and Ask Although it is fundamental to any transaction, many individual investors fail to fully understand the importance of the bid and ask. When looking at the current price of any trading securities,  keep in mind you are seeing the closing price of that specific time frame. To have more information we need to look at the bid price and the ask price.  In the context of a security market, bid indicates demand and ask indicates supply. The bid price tells us how much buyers are willing to pay for a specific equity; the ask price tells us how much the sellers are willing to sell for a specific equi

Put Option

A put is an option that grants the owner the right, but not the obligation, to sell a particular quantity of the underlying asset for a predetermined price within a predetermined window of time. When purchasing a put option, the buyer is betting that the underlying stock will decline in value below the exercise price before the option expires. The price at which the underlying asset must trade in order for the put option contract to remain valuable is known as the exercise price. Understanding Put Options Put options are a type of financial contract that gives the holder the right, but not the obligation, to sell an underlying asset at a specified price, known as the strike price, on or before a predetermined expiration date. They are one of the two types of options contracts, the other being call options . Put options are commonly used by investors and traders as a hedging tool, as well as a way to speculate on the price movements of the underlying asset. If an investor believes that


The amount of money that is briefly tallied twice within the banking system as a result of delays in recording a deposit or withdrawal. These delays are generally caused by the time it takes to process paper checks. As soon as a check is deposited, a bank credits the customer's account. The time it takes to receive and record a check from the payer's bank varies. The amount of the check "exists" in two locations, in the accounts of both the payer's and recipient's banks, until the check clears the account upon which it is drawn.

Up Volume

An increase in the bullish volume activity of shares traded in a market or asset. Up volume happens during bullish trends or at the end of bullish reversal. The appearance of increased up volume activity for the day is often accompanied by an increase in asset's prices as well. Up volume is also known as up on volume or up bar volume. Overall, there are many variables that can affect volume and their impacts can vary. Up volume is opposed to down volume.

Total Return

Accounts for all dividends, interest, and capital gains received prior to deducting fees and expenses, as well as any changes in the principle value, including share price, assuming that dividends and capital gains are reinvested. This percentage is frequently expressed in terms of time (one, five, ten years, and/or fund life). Also, a way of estimating an investment's return that takes into account share price fluctuations and dividends.

Trend Analysis

Trend analysis is a technical analysis technique that aims to forecast future stock price movements based on recent trend data. Trend analysis forecasts the long-term direction of market sentiment by analyzing past data such as price movements and transaction volume.


When issued by a business, community, or the federal government, a bond functions similarly to a loan or an IOU. The issuer offers to pay the investor a certain rate of return for the usage of the money at predetermined intervals as well as the whole amount of the loan on a specific date. Bond issuers Bonds are loans to the issuer. Governments and enterprises use bonds to borrow money. Roads, schools, dams, and other infrastructure need government funding. War's unforeseen costs may also require funding. Corporations borrow to grow, buy property and equipment, execute profitable initiatives, conduct R&D, and hire personnel. Large companies need more money than the regular bank can supply. Bonds help solve this issue as they let multiple investors act as lenders. Thousands of investors can contribute to public debt markets. Long after a company has received financing, markets allow lenders to sell or purchase bonds from other investors. Understanding Bonds Bonds are one of the k

Penny Stock

The term penny stock refers to a company's stock that is traded for less than $5 a share. The $5 price level comes from the 1934 Securities Exchange Act, a law which was passed by the U.S. Congress to control all securities transactions involving parties other than the original issuer. The Security Exchange Act stated that equity securities with a market value of less than $5 per share could not be listed on any national stock exchange or index. Although some penny stocks are traded on significant exchanges like the New York Stock Exchange (NYSE), the majority are traded over-the-counter (OTC) using either the privately held OTC Markets Group or the electronic OTC Bulletin Board (OTCBB). OTC trades don't take place on a trading floor. All quotations are generated digitally.


A public company provides informal guidance to shareholders outlining the expected earnings in the upcoming fiscal quarter or year. The term "guidance," which is sometimes used to refer to a forward-looking statement, comprises internal forecasts for sales, profitability, and capital expenditures. These projections are typically subject to adjustment over time. Guidance is often contrasted with analysts' estimates, which are produced by outside industry experts.


Usually, cash or other liquid assets that are held or acquired for use as funds. The phrase can be used broadly to refer to all of a company's monetary-valued assets, including its inventory, real estate, and equipment. When it comes to planning a budget, capital refers to cash flow. In general, capital can serve as both a gauge of wealth and a tool for generating more wealth through investments in capital projects or direct investments. Individuals' net worth includes capital and capital assets. Companies have capital structures that include working capital for everyday expenses, equity capital, and loan capital. More specifically, capitals often refers to long-term investments made in a firm and acquired through the issuance of preferred or common shares, the retention of a portion of the company's earnings since its creation, and long-term borrowing.

Shooting Star Candlestick

A shooting star is a bearish candlestick that has a small body, a long upper shadow, and little or no lower shadow. The shooting star is basically an inverted hammer (or a gravestone doji) that appears at the top of an uptrend. The formation of this pattern is the result of zealous buying. Prior to the shooting star formation, price is basically in a momentum run pushed upward by bullish energy. On the day of the shooting star formation, price rises significantly higher, fueled by exuberant buying and reaching overbought conditions. At that point price starts to pullback and closes the day near or below the opening price. Generally that marks the end of the uptrend and the beginning of a correction or downtrend.

Kal's Option Trade of the Week- MARA Short Put Vertical

   MARA is past earnings but it has been on a slide for the past few weeks so volatility is still high.  As contrarians, we will make a trade with the assumption that over the next few weeks it will tend to bounce.  We do that by selling a put vertical in MARA.  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 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


A share of a stock or a mutual fund is a unit of ownership in an investment. Shares are a type of financial asset that some businesses use to guarantee an equitable dividend distribution of any declared residual profits. A stock with no dividend payments does not distribute its income to its shareholders. Instead, shareholders look forward to a rise in the stock price as business profits increase. There are two primary kinds of shares: common shares and preferred shares. The terms shares and stock are frequently used interchangeably.


An oscillator is a technical analysis indicator that creates high and low bands between two extreme values and then displays lines that oscillates between these two areas. Oscillators are trend indicators that are used by traders to identify short-term overbought or oversold positions. Technical analysts interpret information as overbought or oversold depending on the oscillator's value's proximity to either extreme values. When the oscillator's value is close to being oversold, it points to a potential buying opportunity. When the oscillator's value is close to being overbought, it points to a potential selling opportunity.

Consumer Price Index (CPI)

The Consumer Price Index (CPI) tracks the monthly change in prices paid by American consumers. The CPI is calculated by the Bureau of Labor Statistics (BLS) as a weighted average of prices for a selection of products and services that is indicative of total consumer spending in the United States. One of the most widely used indicators of inflation and deflation is the CPI. The producer price index (PPI), which tracks changes in the prices paid to US producers of goods and services, has a different survey methodology, pricing sample, and index weights than the CPI report.

Russell 2000 Index

The Russell 2000 Index is a stock market index that tracks the performance of the 2,000 smaller businesses that make up the Russell 3000 Index. Because of its concentration on smaller businesses that target the U.S. market, the Russell 2000, which is administered by London's FTSE Russell Group, is frequently referred to as a leading indicator of the American economy. Many investors compare the success of small-cap mutual funds to the movement of the index since they view the index as a better reflection of opportunities in that entire sub-section of the market than in the other main indices (Dow Jones, S&P 500 and Nasdaq 100). That's because those narrower indices may have biases or be exposed to more stock-specific risks which might affect their performance overall.


Warrants are a type of derivative that grant the right, but not the obligation, to buy or sell a security—most often an equity—at a specific price before expiration. T he cost at which the underlying securities may be purchased or sold is referred to as exercise price or strike price. European warrants may only be exercised on the expiration date, whereas American warrants may be exercised at any time on or before that date. Call warrants and put warrants are terms used to describe warrants that grant the right to buy or sell securities, respectively.

Environmental, Social and Governance (ESG)

An analysis method used by socially responsible investors to help them evaluate possible investments in an effort to increase long-term, risk-adjusted financial returns. Environmental criteria take into account a company's environmental protection efforts, such as corporate climate change policies including things like carbon emissions, environmental laws, water stress, and waste. The management of relationships with customers, suppliers, employees, and the communities in which it operates is examined under the social criteria. Governance refers to elements that affect how businesses and investee entities are managed and supervised, such as board composition and compensation, audits, internal control, and shareholders rights. Regardless of whether a strategy has a sustainable mandate, environmental, social, and governance (ESG) integration is the process of incorporating ESG information into investing choices to assist improve risk-adjusted returns. ESG and "sustainable invest


A blockchain is a shared distributed database or ledger between computer network nodes. A blockchain serves as an electronic database for storing data in digital form. The most well-known use of blockchain technology is for preserving a secure and decentralized record of transactions in cryptocurrency systems like Bitcoin. The innovation of a blockchain is that it fosters confidence without the necessity for a reliable third party by ensuring the fidelity and security of a record of data. Understanding Blockchain Blockchain records and distributes digital information without allowing editing. A blockchain is the basis for immutable ledgers, which cannot be changed, deleted, or destroyed. Blockchains are distributed ledger technology (DLT). The blockchain concept was first presented as a research study in 1991, before Bitcoin. Since then, blockchains have been used to create cryptocurrencies, DeFi apps, NFTs, and smart contracts. Decentralization Imagine a corporation with tens of thous

Overvalued Stock

A stock is considered to be overvalued if its current price is higher than its profit estimates or price-to-earnings (P/E) ratio would indicate. As a result, analysts and other economic experts anticipate a gradual decline in price.

Option Series

The term "option series" describes a collection of options on an underlying security that have the same defined strike price and the same expiration month. Call and put options , however, are a part of different series. For instance, a call option series would consist of the calls that are open on a particular security at a particular strike price and would expire in the same month.


A group of comparable securities, such as stocks in a particular sector or specific industry. A sector is a segment of the economy where companies engage in similar or related commercial activities, produce, or services . Economists can assess the financial activities within various sectors of an economy by dividing it into those sectors. As a result, sector analysis shows whether an economy is growing overall or if some sectors are facing economic downturn. The 11 sectors in the U.S economy, listed in order of size, are Information Technology, Health Care, Financials, Consumer Discretionary, Communication Services, Industrials, Consumer Staples, Energy, Utilities, Real Estate, and Materials.

Binary Option

A binary option is a financial contract in which depending on whether the option expires in the money, the participants to the transaction are allocated one of two outcomes. The name "binary" refers to the fact that binary options depend on the result of a "yes" or "no" proposition. If the binary option expires in the money , traders are paid out, and if it does not, they lose money. Understanding Binary Option Binary options have expiration dates and times. To profit, the underlying asset's price must be on the right side of the strike price at expiration. After the expiration of a binary option, the resulting profit or loss is immediately applied to the investor's account. This means that the buyer of a binary option will either get paid some fixed amount or lose their entire investment. As a counterbalance, the option seller might choose to keep the premium paid by the buyer or must pay the full amount. A basic example of a binary option would b

Bear Market

A market is said to be in a bear market when prices continue to drop over time. Typically, it refers to a scenario in which widespread pessimism and unfavorable investor sentiment cause securities values to decline by 20% or more from recent highs. Bear markets are frequently connected with drops in an entire market or index like the S&P 500, but individual stocks or commodities can also be categorized as being in a bear market if they suffer a decline of 20% or more over a prolonged period of time, usually two months or more. Bear markets can also occur in conjunction with broader economic downturns like a recession. Bull markets that are moving upward can be contrasted with bear markets. Bear Markets Explained Company cash flows and profit projections are a major factor in stock pricing. Stock prices may fall when growth expectations are not met. The protracted periods of low asset values that can result from herd behavior, panic, and the rush to protect against potential losses

Secondary Market

The secondary market is the financial market where previously issued financial instruments including stock, bonds, options, and futures are bought and sold. The term secondary market refers to the market generated by the subsequent trading of such securities, in contrast to primary market, which refers to the market for fresh issues of securities. Initial public offerings (IPOs) are an example of primary markets. The primary market is the initial sale of the security by the issuer to a buyer who then pays the issuer the proceeds. The secondary market is where all transactions that take place following the security's initial sale. In secondary market, also known as aftermarket, the underwriter resells the securities to additional bidders. The secondary market is where holders of securities can buy and sell them. The secondary market is what most people refer to as the stock market. The Nasdaq and the New York Stock Exchange are examples of U.S. secondary markets.

Share Repurchase

A corporation can buy its own shares back from the market in a share repurchase. When management believes that a company's shares are undervalued, it may decide to purchase them back. The business either purchases shares directly off the market or gives its stockholders the choice to sell their shares to the business at a predetermined price. This procedure, also referred to as a share repurchase, lowers the number of outstanding shares. Investors frequently believe that buybacks will enhance the share price since they reduce the supply of shares. This presupposes that the measure won't reduce interest in the shares. In addition, a company repurchasing its own shares indicates a conviction in the stability and continued growth of its own business.

Musk's Stupid Twitter Buyout is Costing Tesla Shareholders Big Time

Today we cover Tesla (TSLA).  The company has hit some delivery issues in Q3 2022 by coming 30,000 vehicles short of the projected target. While that wasn't great news, the biggest issue that Tesla is facing right now, is his CEO, Elon Musk.  Musk made the most reckless move a few months back by purchasing Twitter for an insane amount of money ($44 billions). When he realized how dumb that move was, he tried to back out of it. He couldn't.  Now he, and Tesla shareholders, are stuck with it and that is dragging Tesla share prices down. The Twitter buyout is costing Musk top dollars.  Unfortunately, his reckless decision is costing Tesla shareholders even more. 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. Whil

Adjustable-Rate Mortgage (ARM)

A mortgage whose interest rate is cyclically changed based on an index. Because the lender can pass part of the risk to the borrower, adjustable-rate mortgages typically have lower beginning interest rates than fixed-rate mortgages. If market rates rise, the interest rate on a variable mortgage may also changes. Getting to Know Your Mortgage Adjustment (ARM) Mortgages often require repayment of the principal over a specified period of time, plus interest, to compensate the lender for their time and the possibility that the value of the loan will have decreased due to inflation. Typically, you'll have the option of locking in a low interest rate for the duration of the loan or allowing it rise and fall as market conditions dictate. Adjustable-rate mortgages typically provide borrowers a lower interest rate at the outset of the loan than they would receive with a comparable fixed-rate loan. After that time, however, the interest rate that determines your monthly payments is subject t

Long-Short Equities

An investment strategy known as "long-short equity" entails taking long positions in stocks that are anticipated to increase in value and short positions in equities that are anticipated to decrease in value. In order to profit from stock increases in the long positions as well as price falls in the short positions, a long-short equity strategy tries to reduce market exposure. The tactic ought to be profitable on a net basis, even though this might not always be the case.

Generally Accepted Accounting Principles (GAAP)

The term refer to a common set of accounting rules, regulations, and processes established by the Financial Accounting Standards Board (FASB) (FASB). When assembling their financial accounts, American public firms' accountants are required to adhere to GAAP. The main objective of GAAP is to guarantee the accuracy, consistency, and comparability of financial accounts for businesses. Most other countries utilize the IFRS standards, while the U.S. primarily uses GAAP.


A merger is an arrangement that combines two current businesses into a single new business. There are various merger types, and businesses merge for a variety of reasons. Mergers and acquisitions (M&A) are frequently carried out to broaden a company's clientele, enter new markets, or increase market share. The goal of all of these actions is to raise shareholder value. In order to stop other companies from buying or merging, companies frequently adopt a no-shop provision during a merger.


Decentralized digital currency that can be transferred on the peer-to-peer Bitcoin network. By acting as money and a means of payment independent of any one person, group, or entity, a cryptocurrency like Bitcoin eliminates the need for third parties to get involved in financial transactions. It is available for purchase on numerous platforms and is given to blockchain miners as compensation for their efforts in verifying transactions. Understanding Bitcoin was officially registered as a domain in August of 2008. As of right now, the domain is WhoisGuard Protected, meaning that its registrant's personal information is being kept secret. In October 2008 the mysterious Satoshi Nakamoto said on the Cryptography Mailing List at "I've been working on a new electronic cash system that's totally peer-to-peer, with no trusted third party."  Bitcoin's current rules and guidelines may be traced back to the "Bitcoin: A Peer-to-Peer Electron


Earnings before interest, taxes, depreciation, and amortization (EBITDA) is a ratio that indicates how much money is made and accessible to pay down debt before those costs are paid. Debt/EBITDA gauges a business's capacity to settle its accumulated debt. A high ratio result can suggest that a business has an excessive amount of debt. In the covenants for business loans, banks frequently set a specific debt/EBITDA target that a firm must maintain in order to avoid having the full loan fall due immediately. Credit rating agencies frequently use this statistic to determine a company's likelihood of defaulting on issued debt, and businesses with a high debt/EBITDA ratio may not be able to properly pay their debt, which could result in a decreased credit rating.

Contracts (Options and/or Futures)

Futures contracts are available for a wide range of financial assets, including precious metals and equity indexes. Depending on which way investors predict an underlying product will move, trading options based on futures entails either buying or writing call or put options . A way to benefit from the movement of futures contracts is by purchasing options, which is much less expensive than purchasing the actual future. If investors believe a future's value will rise, they will buy a call. If investors anticipate a future's value to decline, they will buy a put. The premium is what investors pay to purchase the choice. Option writers are also traders.

Historical Volatility (HV)

Historical volatility (HV) is a statistical indicator of how widely returns for a certain securities or market index have varied over time. In most cases, this metric is produced by calculating the average departure from the price of a financial instrument during the specified time frame. The most popular, though not exclusive, method for figuring out historical volatility is by using standard deviation. Generally speaking, a security is riskier the higher its historical volatility value. Given that risk might go either way—bullish or bearish—that outcome is not necessarily undesirable.


Futures are financial derivative contracts that bind parties to buy or sell an asset at a specified future time and price. Regardless of the market price at the date of expiration, the buyer or seller must buy or sell the underlying asset at the agreed-upon price. Physical commodities and financial instruments are examples of underlying assets. Futures contracts are standardized to make trading on a futures market easier and to specify the quantity of the underlying asset. Futures can be utilized for speculation or hedging.


The overall market value of a firm and is defined as the number of outstanding shares multiplied by the share price. Market capitalization is another term for an accounting method in which a cost is included in the value of an asset, and is then deducted during the asset's useful life rather than being deducted at the time the cost was incurred.


A dividend is a payment made by a corporation to its shareholders that is decided by the board of directors. Dividend payments are frequently made quarterly and might take the form of cash payments or stock reinvestments. The dividend yield, which is the dividend per share, is defined as a percentage of the company's share price. Common shareholders of a dividend-paying company that own the shares on the ex-dividend date or earlier, are eligible to receive a payment.

Board of Trustees

A board of trustees is a team of people who are either elected or appointed to run an organization on a broad scale. The board of trustees , which often serves as an organization's governing body, works to ensure that all management decisions are made with the interests of stakeholders in mind.

Simple Moving Average (SMA)

A simple moving average (SMA), also know as simple-day moving average or simply moving average, is a technical indicator that determines the average of a chosen range of prices, typically the closing prices, by the quantity of periods in that range. For example, the 50 SMA adds up the closing prices of the past 50 days and divides the sum by 50 (days) to make an arithmetical average. From that calculation, the SMA indicator displays a line in the chart that can be used as a support level if price is above it or a resistance level is price is below it. Generally, more that one moving average is used, in order to have a more complete picture analysis of price action during short-, intermediate- and long-term periods. Other moving averages exist, such as the weighted moving average (WMA) and the exponential moving average (EMA).