Market News

Get out there. For a miniscule wager, riches are a possibility. It's a dream. Why not dream for a while. Look at it as a small investment of risk capital. That's the thought process of many Mega Millions players. With millions of options contracts trading per day on stocks, ETFs, commodities and other futures contracts, the mentality is the same. For a small investment you might make really good returns on your money. When I traded commodities in the options trading pits between the 1980s and up to 2010, it was estimated that 90% of the people that traded commodities lost money. That's still quite a better than Lottery players. At least commodity trading was a zero sum game. Now it's time to look at Lotto versus options trading.

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Tesla Motors -- in which I have no financial interest -- has a huge governance problem. And in the last few weeks, that problem has cast a dark shadow over those who hope to ride their love of Tesla's products to stock market riches. Here are three things that fried my

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Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.

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Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.

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Brexit Means More Easy Money, and U.S. Stocks Love Easy Money (For Now): In a normal world, Brexit would be bearish for capital markets and the economy but in our easy money addicted world, Brexit is actually bullish for U.S. stocks. Why? Because it gives central banks the green light to continue (if not do more) easy money. For now, investors love easy money and are buying stocks because there is so much negative news priced in to the stock market and the economy that any bullish news (Friday's stronger than expected jobs report) is enough to send stocks racing higher. Investors also do not have to worry about a hawkish Fed because the Fed can now easily wait until after the election (if not longer) before raising rates. All they have to do is say they are "watching" the impact of Brexit on the global economy and keep kicking the can down the road. Additionally, if the U.S. economy weakens, they can easily lower rates (and cite Brexit) and then pump more easy money into the system. Remember, central banks have one objective: keep stocks higher (long enough for the economy to kick into gear).

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If you have been trading options in Google (GOOGL Alphabet A), Amazon (AMZN) and the CBOE Volatility Index (VIX) you are in good company. There are many participants each day. The VIX, however, is the landslide leader in the category of volume. This is not surprising. The lower the price of the trading vehicle, the more likely it would be to lead in volume, if all else was equal. In this case, however, the markets are not equal.

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The eight 'Dogs of the Dow' for 2016 have an aggregate gain of 15.5% year to date as a basket of stocks, led by gains of 20% or more for Verizon, Wall-Mart and Exxon Mobil.

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U.S stocks rose at the opening bell Monday, pushing the S&P 500 to a new record high.

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Looking at the universe of stocks we cover at Dividend Channel, on 7/14/16, RPM International Inc (NYSE: RPM) will trade ex-dividend, for its quarterly dividend of $0.275, payable on 7/29/16. As a percentage of RPM's recent stock price of $52.12, this dividend works out to approximately 0.53%, so look for shares of RPM International Inc to trade 0.53% lower — all else being equal — when RPM shares open for trading on 7/14/16. Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen » or click here to find out which 9 other stocks going ex-dividend you should know about, at DividendChannel.com »

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