ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The stock market has already started cooling off from overbought conditions, but the weakening euro, increasing bond yields, and widening spreads have markets on edge yet again. After listening to a Planet Money segment on the financial problems in Spain called “A Theme Park, An Airport And The Next Banking Crisis” by Chana Joffe-Walt, I … Read more
I was clearly far too early in restarting a pairs trade short Microsoft (MSFT) and long Intel (INTC). Over the past two months, the performance of MSFT has steadily improved, while Intel’s performance has steadily worsened. The MSFT/INTC ratio is now at 10 month highs. Source: stockcharts.com Typically, I would look at this divergence and … Read more
The cooling process for gold and silver has moved slowly and deliberately. The first step featured a fight through parabolic upswings, especially for silver. The next step finally seems underway with the first break of primary (short-term) uptrends. Gold closed below its 50-day moving average (DMA) for the first time since August. Silver closed below … Read more
Throughout the stock market’s meandering upward in December, I maintained that technical conditions were not yet overbought. I also noted that T2108, the percentage of stocks trading above their 40-day moving averages (DMAs), would likely not reach the overbought threshold (at least 70%) until a rush of “panicked buyers” sent the market soaring higher. I … Read more
Research In Motion (RIMM) reported earnings December 16, 2010. The general reaction to the report has been muted with the stock trading down 1.7% since the market close before the report. I have followed RIMM’s stock repurchasing activity for a while now, but I neglected to note earlier that RIMM announced the (aggressive) completion of … Read more