ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Two weeks ago, I expressed caution over Spotify Technology (SPOT) in the wake of sellers fading an extremely bullish upgrade from an analyst at KeyBanc. That upgrade to overweight from sector weight included a $340 price target. The contrary and surprising trading action right after the analyst call was telling. A week after KeyBanc, an … Read more
The seasonal trade in home builders continues to unfold more like a typical year. The iShares U.S. Home Construction ETF (ITB) peaked in May on an absolute basis and relative to the S&P 500 (SPY). Since that peak, ITB is down 12.2% while the S&P 500 is UP 3.9%. This gap is so wide that … Read more
Stock Market Commentary Last week opened with a gap down amid hand-wringing about the potential for contagion from debt problems in China’s property market. However, the week ended like nothing happened. The major indices even managed marginal gains after the dust settled. As is so often the case, the Federal Reserve, under the comforting words … Read more
After two bullish engulfing patterns, Uber Technologies, Inc (UBER) finally carved out a more lasting, even if sloppy, bottom. A business update at the Goldman Sachs Communacopia Conference provided the catalyst. CEO Dara Khosrowshahi delivered good news across several operational metrics. He also reported that UBER may get to profitability in the current quarter. After … Read more
Stock Market Commentary In my previous post I looked ahead to the Fed meeting on Wednesday as a main wildcard facing down the stock market’s most predictable trading pattern. Instead, heavy headlines about a looming financial crisis in China ground the gears of the stock market. Sprinkle in some obligatory fear about the dire warnings … Read more