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Volatility

Double Buy Signal in $ARKK

By Lawrence G. McMillan

ARK Innovation ETF (ARKK) recently gave both a McMillan Volatility Bands and Put-Call Ratio buy signal and broke it's recent downtrend; therefore we expect higher prices for the etf. See the charts below.

Expensive Option Strategies (Preview)

By Lawrence G. McMillan

Normally, we have “Naked Put Writes” in this section of the newsletter. But with the explosion in implied volatility and stock price in several “short squeeze” stocks (or “meme stocks,” if you prefer: a meme stock is any publicly traded company that is benefitting from the fact that investors are using social media to drive interest in the company's shares).

The following table shows the current status of the most expensive of these in terms of implied volatility:

Weekly Stock Market Commentary 6/4/2021

By Lawrence G. McMillan

The stock market has run into considerable resistance at the top of the trading range, as it appears to be consolidating for a violent move either an upside breakout to new all-time highs, or a failure at the top of the range, leading to a swift retracement to the bottom of the range (4060). Since May 24th, $SPX has not closed above 4208 nor below 4192. That is an extremely narrow range, considering the volatility that has been displayed since February 2020.

Weekly Stock Market Commentary 5/21/2021

By Lawrence G. McMillan

The S&P 500 Index ($SPX) made a new all-time high on May 7th. Since then, a correction has been underway, and there have been several times in the last week when I'm sure that both the bulls and the bears thought they had taken control. There were two rather violent declines, both terminating near the 4060 level, so that is now the first support level. Both of those declines were followed by furious rallies back to the slightly declining 20-day Moving Average. A breakout from the current range should see follow-through in that same direction.

A Timely MVB Sell Signal in Ethereum

By Lawrence G. McMillan

Our McMillan Volatility Bands Buy/Sell Signals product for TradingView is great at identifying overbought and oversold cryptocurrencies conditions. The latest Ethereum Sell Signal on May 16th was certainly timely. See the chart below.

MVB Signal Scanner Now Includes Crypto

By Lawrence G. McMillan

We're proud to announce that McMillan's Volatility Bands Signal Scanner now includes all Cryptocurrencies including Bitcoin, Ethereum, Dogecoin, etc.

Each morning, you will receive an email containing the new MVB buy & sell signals from our curated list of tradable assets including stocks, ETFs, futures, and now cryptocurrencies.

Weekly Stock Market Commentary 5/14/2021

By Lawrence G. McMillan

On Friday, May 7th, $SPX broke out to a new all-time high and so did the Dow ($DJX). However, after an early Monday morning rally, things reversed badly, and $SPX dropped sharply for the first three days this week, losing a whopping 173 $SPX points.

But there was no follow-through the next day, and in fact $SPX has rallied strongly, regaining the 4120 level and more.

Weekly Stock Market Commentary 5/10/2021

By Lawrence G. McMillan

From early March through mid-April, $SPX was on a tear. Since then, it went mostly moved sideways, while establishing a support area near 4120. Now it's broken out to the upside again. Below 4120, there is support near 4000 (the March highs), but that is an area that was never tested, since $SPX just blew right through the March highs on a double gap move higher in early April. Finally, the support at 3850-3870 is still important, for that is the area from which the current leg of this rally was launched.

Weekly Stock Market Commentary 4/30/2021

By Lawrence G. McMillan

The pace of the market's advance has slowed from the torrid run that it had between March 26th and April 16th, but $SPX is still making new all-time highs almost every day.

$SPX has three major support levels, all noted with horizontal red lines on the chart in Figure 1: 4120 (which is the daily lows of several days during April), 4000 (which was the March high), and 3850-3870 (which is the area from which the current leg of this bull market rally emanated on March 26th.

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