ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The day after ShotSpotter (SSTI) reported earnings last month, the stock gained 6.4%. The buyers returned for the next four days to confirm a breakout above resistance at the 50-day moving average (DMA). SSTI closed the week up 32.1% post-earnings, and the stock looks like it finally wants to bottom. The 50DMA is turning upward … Read more
With a Partial Phase One Trade Deal apparently at hand between the U.S. and China, emerging markets look more interesting than ever. I am scouring the charts for entry points in related currency pairs. The South African rand looks particularly interesting. Against the U.S. dollar, the rand (USD/ZAR) created a double top from September, 2018 … Read more
U.S. Dollar Breakdown In the wake of the Federal Reserve’s last pronouncements on monetary policy, the U.S. dollar index (DXY) sold off and confirmed its latest breakdown below its 200-day moving average (DMA). This latest 200DMA breakdown looks more damaging than other episodes. For example, the U.S. dollar index extended further below its 200DMA than … Read more
AT40 = 56.9% of stocks are trading above their respective 40-day moving averages (DMAs)AT200 = 55.7% of stocks are trading above their respective 200DMAsVIX = 12.6Short-term Trading Call: neutral Stock Market Commentary It appears China and the U.S. finally agreed on a Partial, Phase One Trade Deal. The bare bones basics on the deal consist … Read more
The seasonally strong period for home builders begins in November. For this period, home builders tend to outperform the S&P 500 (SPY) which is also in its own period of seasonal strength. So far, home builders have lagged significantly in what I continue to call the moment of truth for home builders. Since November, the … Read more