ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Five months ago, I made the case for bottom-fishing in DexCom (DXCM) following the news of competitor’s Abbott (ABT) product approval. The trade was looking shaky a few weeks later when the stock made a minor new closing low from that price collapse. November earnings produced the catalyst to confirm the bottom, and the stock … Read more
In my last post on Bitcoin (BTC-USD), I worried about the sustainability of the $6000 bottom. I am now even more worried. Google Search interest continues to wane on Bitcoin. Ever since December and the major top under $20,000, search interest in “Bitcoin” has trended downward with spikes in search activity also trending lower. Source: … Read more
AT40 = 48.5% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 52.9% of stocks are trading above their respective 200DMAs VIX = 14.6 (11.5% drop) Short-term Trading Call: bullish Commentary The (expected) plunge in the volatility index, the VIX, says it all…the stock market is ready to return to its … Read more
AT40 = 39.3% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 49.7% of stocks are trading above their respective 200DMAs VIX = 17.8% Short-term Trading Call: neutral Commentary “Dear President Trump: We are writing to express deep concern about the prospect of broad, global tariffs on aluminum and steel imports. … Read more
The seasonal trade on home builders for 2017/2018 showed its first sign of trouble when the iShares US Home Construction (ITB) fell sharply off its 10+ year high in January on the same day the S&P 500 (SPY) set a new (and its last) all-time high. Almost two weeks later, in early February, the under-performance … Read more