ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Management for LGI Homes (LGIH) set aside an hour for its Q1 2018 earnings conference call. They only needed 37 minutes, including 23 minutes spent on Q&A. Perhaps they should have used the entire hour. Source: FreeStockCharts.com As the chart above shows, LGIH has had a wild two days following its earnings report. The first … Read more
Another day, another Amazon.com (AMZN) panic… “Sears Auto Centers…announced today that it is working with Amazon.com to provide full-service tire installation and balancing for customers who purchase any brand of tires on Amazon.com. The service will be rolling out to customers across the U.S. over the coming weeks. With this collaboration, Sears Auto will become … Read more
AT40 = 53.5% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 45.9% of stocks are trading above their respective 200DMAs VIX = 14.8 Short-term Trading Call: cautiously bearish Commentary I was right to be bearish last week…until the very last day when all at once the market reversed almost all … Read more
The deconstruction continues in material stocks. The culprit this time around was a poor reading and interpretation of construction spending. Per AP News: “U.S. construction spending dropped 1.7 percent in March, the biggest setback in 11 months, with weakness in a number of sectors including the biggest plunge in home building in nine years. The … Read more
The following chart reminds me that except for one post-Brexit emergency rate cut and its rapid reversal once the cut turned out to be unnecessary, the Bank of England (BoE) has done nothing with interest rates in the 9 years since the financial crisis. Source: Bank of England During an interview with the BBC on … Read more