DeanJenkins

Liquidity and Bid/Ask spread are different measures.

You can have great liquidity and still have large spread due to high volatility.

I like to see at least a few hundred contracts open interest on the expiration date I'm considering, across all strikes.

If all other measures meet my criteria but the spread is large, I sometimes use a limit order around the mid-point and see if I can get filled.  If not, walk away.

This is interesting, we will scan for good setups in the Live Trading Room.

https://www.cnbc.com/2022/03/30/investors-believe-its-time-to-buy-high-dividend-stocks-cnbc-survey-shows.html

Will Smith’s “moment,” with Chris Rock, during the Oscars, is all the talk today.

I don’t think I’ve ever watched the Oscar’s, just not interested . . .

But I couldn’t help hearing about last night’s show and the “highlight” of the event.

A dude slaps another dude across the face, on live national TV, yeah, that’s kind of interesting.

But that is not the “slap” that should have your attention.

Here is the big deal: The yield curve just inverted.  That ought to get your attention like a slap to the face.

Why?

An “inverted yield curve” in the bond market is a distortion that has often occurred before U.S. recessions. 

Put that in the mix with 40-year high inflation, record high gas prices, war in Ukraine, a correction in all the major indexes, and declining consumer confidence and you might just be “feeling the sting,” pretty soon.  Ouch!

What is an “Inverted yield curve?”  Simply put means short-term bond yields exceed those of longer-term bonds. It means investors are worried about the economy’s long-term prospects.

The two-year versus 10-year yield on a U.S. Treasury bond is generally the most watched by economists. That curve hasn’t yet inverted, but another part of the market did today, Monday, March 28^th, 2022.

The five-year and 30-year U.S. Treasury yields inverted, the first time since 2006, before the Great Recession.

Maybe this was a “baby slap,” not the big one yet, which would be the two-year versus 10-year inversion.  But it is a warning sign that should get our attention.

How is the market reacting?  Check out this video with the latest technical analysis of the S&P 500:

https://youtu.be/UNGiptPGsuU

Like this?  Or not?  Be sure to leave a comment.

I have not heard of that book, so cannot comment on it.

A good book on technical analysis is "Elliott Wave Techniques Simplified" by Bennett McDowell, it is on Amazon.

0.05 would be a good starting setting for SOXL range chart.  It will probably need to be refined after that, I covered this in yesterdays session.  Recording is posted now.

Census bureau Retail Sales report will be released tomorrow, Tuesday, 11/16 at 8:30 AM ET.  Could move the market.

https://www.forexfactory.com/calendar

Also, Walmart (Tuesday, 11/16 before the open) and Target (Wednesday, 11/17 before the open) earnings will give insight to retail.  Any sign of weakness, particularly in the forecasts, will likely be punished.