ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
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
AT40 = 54.0% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 46.0% of stocks are trading above their respective 200DMAs VIX = 15.4 Short-term Trading Call: cautiously bearish Commentary Source: My Daughter A week ago, I finally changed my short-term trading call: I went from neutral to cautiously bearish. When … Read more
The last Housing Market Review covered data reported in February, 2018 for January, 2018. At the time, I connected the dots on the bearish implications of converging technicals and fundamentals. The iShares U.S. Home Construction ETF (ITB) broke down below its 200-day moving average (DMA) in a very bearish move. Yet, the very next day, … Read more
Over the last two earnings reports, Intel (INTC) experienced historic 1-day gains. For January earnings that reported on Q4 results, INTC enjoyed a 10.7% gain the next day. For October earnings that reported on Q3 results, INTC enjoyed a 7.4% pop. These 1-day post-earnings gains were Intel’s 3rd and 7th highest 1-day post-earnings gains since … Read more