ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
At the beginning of February, I refreshed my idea to play a top in iron ore with a pairs trade going long Rio Tinto (RIO) and short BHP Billiton (BHP). The timing was fortuitous given it was right before a large sell-off in the stock market. I ended up profitably fading rallies in BHP two … Read more
I heard commentary after the Fed’s proclamation on monetary policy on March 21st that the Fed is “one vote away” from 4 rate hikes this year. Yet, something strange happened along the way to over-speculation on the number of rate hikes in 2018: the traders putting their money on the line on the 30-Day Fed … Read more
Just a week and a half ago I was pointing to a promising breakout for Teucrium Corn ETF (CORN). That move turned out to be the top of that rally. Source: FreeStockCharts.com I am still holding my core position in CORN, but I am now looking to buy this dip with a short-term trading position. … Read more
AT40 = 42.9% of stocks are trading above their respective 40-day moving averages (DMAs) (traded as low as 37.6%) AT200 = 47.9% of stocks are trading above their respective 200DMAs VIX = 19.0 (traded as high as 21.9) Short-term Trading Call: neutral Commentary In my last Above the 40 post, I described how the stock … Read more
I had high hopes for Meritage Homes (MTH) before and after the company reported earnings last month. Home builders were leading the market into a big sell-off, and I expected MTH to set the record straight on the health of the housing market. The headline earnings were solid but not quite inspiring enough. The stock … Read more