Filling the Gaps

This Week’s Newsletter Sponsored by Direxion

Traders: Is Amazon Primed for More Upside or a Bearish Reversal?

Amazon surpassed $200/share, and its upcoming quarterly earnings could drive further movement. The Direxion Daily AMZN Bull 2X Shares and Direxion Daily AMZN Bear 1X Shares (AMZU and AMZD) seek daily investment results, before fees and expenses, of 200% and 100% of the opposite, respectively, of the performance of the common shares of Amazon.com Inc. Explore AMZU and AMZD.

Distributor: Foreside Fund Services, LLC.

This week, Josh and Michael were joined by fan favorites JC Parets of All-Star Charts and Joe Fahmy of Zor Capital. They all discussed the Nikkei, buying green in a sea of red, the opportunity in industrials, the VIX spike, and tips for traders during market corrections. (Listen)

• The Housing Market with Mike Simonsen | Talk Your Book (Listen)

• Enough! This is How the Sahm Rule Predicts Recessions | Live From the Compound (Listen)

• Four Reasons the Stock Market is Freaking Out | What Are Your Thoughts? (Listen)

• Flash Crash or Recession? | Animal Spirits (Listen)

• When Should I Get Out of T-Bills? | Ask the Compound (Listen)

• The Dumbest Crash Ever | The Compound and Friends (Listen)

• Is Buying a House in This Market a Mistake? | Jill on Money Tips (Listen)

After an extended period of calm, the VIX spiked this week. Despite all the hullabaloo the stock market ended pretty much flat on the week. There are some real reasons for concern for the U.S. economy, but the big sell-off seems to have been a leverage unwind more than anything else. Above all else it is a good reminder that volatility is the cost of admission in the stock market.

Prior TCAF guest David Nadig wrote a thought-provoking piece on the impact of passive investing. The piece dives deeply into how index investing has changed the plumbing of the financial markets and made things more fragile rather than less.

Summer may be coming to an end, but that doesn’t mean you couldn’t use a one-of-a-kind finance-themed Hawaiian shirt. It is a collab between The Compound and Tropical Bros. The best thing is that 10% of all sales will be donated to No Kid Hungry.

No new episode of TCAF this week. Check back next week for future guests.

• Got something to say? Reach out to the shows at Animal Spirits, Ask the Compound, or Jill on Money.

• Interested in sponsoring The Compound? Reach out to Graham for details.

• You can join the other 151k people who subscribe to The Compound on YouTube.

• Need additional compelling content? Follow The Compound on Twitter and Instagram.