January 2018

By Daniel P.Collins

Annual year in review issues always produce some surprises.

By Daniel P.Collins

In recent years, futures commission merchants (FCMs) have focused on creating efficiencies and adjusting to the “new normal” which included increased regulatory and compliance costs, tougher competition in a mature consolidating industry, dealing with aggressive product pricing from exchanges and perhaps most significantly, a more than decade-long low interest rate environment.

By Jeff Joseph
Scott Adams is the creator of Dilbert, a daily comic syndicated in more than 2,000 publications that takes a satirical look at work office culture. He has just dropped his latest book, “Win Bigly: Persuasion in a World Where Facts Don’t Matter,” which highlights the strategies of persuasion Donald Trump used in his upset victory in the 2016 presidential election.
By Modern Trader staff
As Cboe Global Markets has been growing consistently in relevance in the exchange world by adding asset classes to its leading position in equity options, Ed Tilly has been there, taking on more responsibility and growing along with it.
By Garrett Baldwin

On July 3, 2017, Standpoint Research founder Ronnie Moas initiated coverage on bitcoin. He recommended investors purchase it at $2,570. By Nov.17, the price neared $8,000.

Also, bitcoin has experienced two forks since Aug. 1, so when you include both bitcoin cash and bitcoin gold in the value, it is considerably higher on a split-adjusted basis.

By Sahm Adrangi​

Adamas Pharmaceuticals (ADMS), a small-cap drug company, will soon launch a treatment for patients with Parkinson’s disease called Gocovri. The mainstay therapy for Parkinson’s is a drug called Levodopa, which usually works well but frequently causes involuntary and often painful movements called dyskinesias.

By Doug Busch

Weibo  (WB) is a Chinese internet play that is up 174% year-to-date and 148% over last one-year period. Earnings have been on the ascent with three consecutive positive quarterly reports. The stock rallied 15.2% in the first half of November.

By John Rawlins

The Cycle Projection Oscillator (CPO) is a technical tool that employs proprietary statistical techniques and complex algorithms to filter multiple cycles from historical data, combines them to obtain cyclical information from price data and then gives a graphical representation of their productive behavior.

By Andy Waldock

This month, we’ll focus on two related markets at opposite ends of their respective trends, cattle and corn. The domestic cattle industry has been expanding its herds for the last couple of years.  Ranchers have taken advantage of low grain prices to hold cattle back, and drive up prices. After recently reaching a 60-year low, the U.S.

By Sahm Adrangi​

Prothena Corp. PLC (PRTA) is a $2.4 billion development-stage biotechnology company whose stock has climbed more than 700% since its spin-off from Elan (ELN) in December 2012. We are certain that its lead asset, NEOD001, will fail its ongoing Phase 2b and Phase 3 trials.

By Doug Busch

Snap Inc. (SNAP) has been a reliable short since its overpriced IPO in March (see “The Banana Republic of Snapchat,” MT April 2017). SNAP is a social media play down 49% since inception. Earnings momentum is about as weak as it can be, with its only three quarterly reports producing double digits sell-offs of 14.6%, 14.1% and 21.4%.

By John Blank

If you want to invest in the hot technology sector, but are looking to drill down to a more specific niche, you may want to look at the Business Software Services sub-sector. This is a Zacks industry sub-sector with 12 public companies. This active information technology niche is currently ranked #21 out of the 265 sectors Zacks rank, which puts it in the top 8%.

By Christine Short

While there still continues to be an ongoing debate around the value of cryptocurrencies, with well-known CEOs such as Jamie Dimon claiming it is a fraud and many others wondering if there is any practical use for them.  An opinion that is far less controversial is the value of the blockchain.

By Matt Weller

The pendulum of market sentiment swings ever back and forth between fear and greed.

By Joe Cornell

In November La Quinta Holdings (LQ),  trading at $17.05 for a market cap $2 billion, announced  plans to separate its real estate business—to be named CorePoint Lodging Inc.—from its franchise and management businesses to create two distinct, publicly traded companies. La Quinta Holdings has hotels throughout the United States, Canada and Mexico.

By Matt Litchfield

Exchange -traded  funds (ETFs) can represent a specific index such as the SPY or even an underlying commodity, but many are created to capture smaller slices of an equity sector. How they are labeled can too often be about marketing and can inaccurately represent what they hold.

By Michael C. Thomsett

The covered call is a well-known, widely liked option strategy. But often overlooked is the equally attractive uncovered, or naked put.

By Tamarah Webb

Trading is hard, even for grizzled veterans, so anyone looking to trade needs to do their due diligence, especially when selecting their broker.

By Paul Cretien
Social media is no longer just a social phenomenon, it is a large and growing market sector. Social media stocks can be exciting and profitable to trade, but require more analysis to separate the wheat from the chaff. Three charts, covering eleven stocks over the period November 2016 through October 2017, will show the different characteristics of each stock – supporting conclusions for those that might provide profitable trading opportunities and others that should probably be avoided.
By Murray A. Ruggiero Jr.
We delve into the complex world of Arima-Garch trading models and detail what it takes to test and optimize your strategy.