ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The Trade After a relative experienced a positive process in buying a used car from Shift Technologies (SFT) several years ago, I kept an eye out for the opportunity to invest in the company. That opportunity came this year with an acquisition by Insurance Acquisition Corp in the form of a SPAC (Special Purpose Acquisition … Read more
Jumia Technologies (JMIA), the “Amazon of Africa”, is up 191% since closing with a 19% 1-day, post-earnings loss on November 10th. The stock is at a 19-month high and has once again become a strong momentum trade. However, buying at these heights inherently comes with a lot of risk. At some point, the stock will … Read more
Stock Market Statistics AT40 = 76.6% of stocks are trading above their respective 40-day moving averages (DMAs) (Day #6 overbought) AT200 = 71.8% of stocks are trading above their respective 200DMAs (near 3-year high and holding breakout above post financial crisis downtrend) VIX = 23.7 Short-term Trading Call: neutral Stock Market Commentary The stock market … Read more
“One-Twenty Two” is a different narrative for students and fans of financial markets. This blog often examines the investing and trading implications of extremes in financial markets. By definition, an extreme condition marks a top or a bottom in prices and invites contrary thinking. For example, the cyclical concepts of “overbought” and “oversold” measure temporary … Read more
For this update, I have to reach all the way back to the early days of the coronavirus pandemic when the stock market was rebounding from its ultimate March lows. Given the oversold trading conditions, I was in the habit of sifting through the rubble looking for bargain buys. AGNC Investment Corp (AGNC), a company … Read more