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 enjoyed overbought trading conditions for the last 13 trading days and 14 of the last 15. I consider the stock market overbought when AT40 (T2108), the percentage of stocks trading above their respective 40-day moving averages (DMAs), trades above 70%. Overbought periods are times of mixed feelings. The stock market tends … Read more
Housing Market Intro and Summary A divergence in the housing market emerged between rangebound home builder stocks and strong housing data. In October, new home sales recorded a third straight month at the 1 million mark. Since new home sales hit the August peak, the stocks of home builders have also largely gone nowhere. A … Read more
Stock Market Statistics AT40 = 79.6% of stocks are trading above their respective 40-day moving averages (DMAs) (Day #10 overbought) AT200 = 76.0% of stocks are trading above their respective 200DMAs (near 3-year high and holding breakout above post financial crisis downtrend) VIX = 20.8 Short-term Trading Call: neutral Stock Market Commentary Instead of Monday, … Read more
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