ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The recent trading action in Molycorp (MCP) has deeply disappointed MCP bulls. The stock has gone from a bullish technical setup to today’s oversold conditions in the space of two weeks. Inserted into this sell-off was MCP’s move to get a stock offering and convertible deal done. The announcement created a tremendous overhang on the … Read more
(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) Before Apple (AAPL) reported earnings, I reviewed the tea leaves in the chart guessing that the stock was getting ready to make its next sprint higher despite what looked like increasing distribution in the stock. … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. To learn more about it, see my T2108 Resource Page.) T2108 Status: 31% and Neutral. General Trading Call: Continue covering shorts. Start adding small long positions. Commentary As I suspected, yesterday’s oversold bounce was short-lived. The selling today was strong, persistent, … Read more
(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) It only took two days for Molycorp (MCP) to officially roll out the pricing of its secondary share offering and convertible notes. MCP indicated these deals were “subject to market conditions”, and market conditions may … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. To learn more about it, see my T2108 Resource Page.) T2108 Status: 31% and Neutral. General Trading Call: Continue covering shorts. Identify longs for buying IF T2108 gets to official oversold territory at 20% or below. Commentary Today’s obligatory bounce from … Read more