Articles written by Bob Lang - Benzinga

|One of the more difficult skills in option trading or stock trading is being patient. Of course, patience simply means waiting for our turn to make a score. But like as a hitter in baseball we must wait for our pitch before swinging the bat. That hitter never really knows when that 'fat' pitch is going to be delivered over the plate, if ever at all.

Momentum Can Be A Good (Or Bad) Thing

|As we meander throughout the markets looking for directional clues, it is challenging when stocks hit levels then reverse suddenly in the other direction. We as traders often wait patiently for a trend to establish and then slowly, gently climb on board. But since the start of the bear market in 2022 those trends move quickly. The big moves up or down are just not sustainable,

How To Whip Inflation Now

|For more than a year, the Fed has been trying to stop runaway inflation. There has been much complaining, even though it’s a bad idea to fight the Fed. So today we’re going to talk about how to slow down inflation and why interest rates will remain high for the foreseeable future.

Parsing Out the Data

|For some time now we have all become accustomed the language of the Federal Reserve, as they talk about crafting policy based on 'the data'. But what is difficult to understand is how this data is interpreted and used for monetary policy, and why certain data is more important than others.

Lower Volatility Readings Tell Us A Great Deal

|Many have expressed frustration with the VIX, or the volatility index. As you may know, this is simply an indicator which tells us about the demand for certain options. In this case, the SPX 500 options. When put options are in demand (looking for stocks to go lower), the volatility index expands higher. This is often when we hear the term ‘risk off’ trading day.

Being Stubborn Will Cost You Dearly

|Over my trading career I have had my share of big wins and losses. The victories are often very sweet and rewarding but it is the losses that are most remembered. Even to this day, I can remember painful trades and investments that happened twenty years ago.

Fear of Loss Should Be on Everyone's Mind

|Of the four fears of trading, the one most worry about is FOMO, or the fear of missing out. After all, what feeling is worse than the markets and everyone else making money without you. Psychologically it can be devastating, to constantly chase after the market and then once you catch up, the reversal happens. Devastating to our bottom line and our minds.

Bullish Sentiment Has Become Overwhelming

|Never mind that the markets are still classified as a 'bear market'. That label has become somewhat of misnomer for some, but for a intents and purposes - we remain stuck in a bear market. It won't last forever though, and frankly we are probably well more than halfway through this nasty bear market, much closer to the end.

Pay More Attention to the Price Action in 2023

|There are a host of indicators out there that don't seem to be portraying what we should be seeing in stock market prices. Take the VIX, or the volatility index for one. This indicator simply measures the demand for puts and calls on the market (spx 500). It rises when the demand for puts increases, and comes down when call options are desired.

The Dynamic Between Price and Volatility

|One thing we have noticed over the past few months is a lack of response by volatility, or the VIX when markets move sharply higher or lower. It is common to see volatility leading price, which is why the VIX is such an important indicator.

Price Action is ALWAYS Telling You Something

|This past month has seen some very sharp moves in the markets. No doubt that is due to elevated volatility. The VIX, or the fear gauge has spent a generous amount of time above the 30% area. In fact, over the last twenty periods the index has not been under 30% for 15 sessions.

Charts Matter More Than Ever

|If you're into technical analysis or chart work, then you probably understand my excitement each day I see the stock market open. Every session is a new data point, something completely different than the prior day, week, month or year. Ranges are different, price levels change, news influence behavior.

Staying Within Yourself - Trading Mindset

Handling Pressure Situations

|As a trader or investor, do you find yourself under the gun to perform at the highest level? To be sure, it's not easy and requires a special type of personality and focus. But some traders and investors put undue pressure on themselves to win, fighting it out with others who may be more capable, have more resources or just better access to information.

Trusting The Price Action

|I learned long ago that price action is king. As a technician, I have a world of indicators that can help give me the edge I am looking for, guiding me toward a buy/sell decision. But it is the price action that matters the most. We can look at all different sort of indicators and latch on, but if the price is not confirming then the indicator is not all that useful.

Don't Let the Loud Noise Confuse You

|It's that time again. Yes, it's time to remind you not to be fooled by others. The stock market pundits and prognosticators are out in droves trying to draw you into this latest bull rally. Nobody wants to be left behind, and the more days that go by without a decent correction or pullback the more likely you are just going to capitulate and go back into the pool.

A Collision Is Coming Soon

|Well, that was quite the performance by the stock market this past week. The SPX 500 is now up 2.65% for the month of August, but what makes that most impressive is the index has only been up three times in ten sessions. Incredibly, the SPX 500 has been red for seven sessions, which tells us the market has been driven by only three sessions. Incredible, indeed.

Fed Pause: It Was Always Just a Matter of Time

|In just one day, the Fed has drawn even closer to being finished with rate hikes - or so they hope. In fact, the market seems to believe the Fed will take a pause soon, perhaps starting the beginning of 2023. Inflation is still raging like an out of control forest fire that has yet to be contained.

How to Manage FinTwit and Other Social Media Platforms

| People are always selling something, whether it's a subscription service, a point of view or simply an idea. Social media has now given people a voice and influence like never before, and it can be pervasive. You can drop something to your followers on twitter that is completely fake and have them believe it 100%.

Change Your Tactics in a Bear Market

|Bear markets are not frequent occurrences, so we get lulled into a 'trance-like' state of trading. We buy the dips and add to our holdings on the way up. Wash, rinse and repeat. In a bull market condition we never have to worry about elevated volatility for very long, because we just 'know' it won't last.