ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
For the second time in a row, KB Home (KBH) is struggling to benefit from a strong earnings report. In January, investors rushed into the stock post-earnings only to create a massive blow-off top. In March, sellers started fading the stock on the same day of the initial post-earnings pop. Last week, KBH broke down … Read more
Last June, 2017, Senior Deputy Governor of the Bank of Canada (BoC) Carolyn A. Wilkins stepped onto the stage with a surprisingly bullish message about the Canadian economy. This speech set the stage for the BoC’s rollback of “emergency measure” rate cuts that responded to the past collapse in oil prices. At the time, the … Read more
About 18 months ago, I made a bearish case for Acacia Communications (ACIA) based on the timing, pricing, and nature of a secondary stock offering that was sandwiched between ACIA’s optimistic earnings guidance and subsequent news that major customer ZTE Corp. significantly reduced its guidance. The stock has never been the same and has drifted … Read more
It seems the U.S. dollar index (USD) has stopped going down. Since careening to its lows in January, the U.S. dollar has bounced up and down through a well-defined range. Source: Stockcharts.com The U.S. dollar gained each of the last 4 trading days as part of its latest run-up toward the top its trading range. … Read more
“…I decided to fade [USD/TRY] in anticipation of the next pullback. I also hope to collect a decent amount of carry as financial markets settle down a bit with earnings in the U.S. Still, until the CBRT takes definitive action, it makes sense to short the lira in the middle of what looks like an … Read more