ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Chesapeake Energy (CHK) has been in the news a lot partially thanks to the leveraged stock trading of its wheeling and dealing CEO. The stock has steadily dropped for over a year from a post-recession high of $36. When the company reported earnings two weeks ago, the stock responded with a strong gap up and … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on May 9, 2012 PRE-EARNINGS. Click here to read the entire piece.) {snip} In 2010, PCLN finally overtook Expedia (EXPE) in revenues. Click image for a larger view… Source: MSN Money {snip} With earnings coming up for PCLN, and given recent successes … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on May 11, 2012. Click here to read the entire piece.) On Wednesday, May 9th, CNBC ran a story with the following headline: “Stocks Trim Losses Yet Again: Is the Morning ‘Amateur Hour’?.” {snip}… the article concluded that anyone trading against the … Read more
On Friday, May 4, Apple (AAPL) dropped 2.9% in price and came within 5 points (0.9%) of closing its entire post-earnings gap up from April 25. During Monday’s trading, Apple’s low (at the open) brought the stock within one point of closing the gap. Click image for a larger view… Source: FreeStockCharts.com The post-earnings gap … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on May 7, 2012. Click here to read the entire piece.) After the S&P 500 (SPY) dropped as much as 0.4% on Monday, April 30, 2012, I decided to take a shot at trading what seemed to be the double whammy of … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on May 3, 2012. Click here to read the entire piece.) It is that time of year again when traders try to predict whether this year’s summer cycle will compel them to dump stocks in May only to return in the Fall. … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are posted on twitter using the #120trade hashtag) T2108 Status: 39% VIX Status: 19% … Read more
When Shutterfly (SFLY) reported earnings on April 30th, the company provided guidance for a larger Q2 loss than analyst expectations. Despite this disappointment, the stock opened the next day with an amazing 9% gain. Unfortunately, trading has been all downhill from there. SFLY closed the day losing all its gains, and it was even trading … Read more
After reporting earnings on the evening of April 24, Baidu (BIDU) dropped 10% or so in after-hours trading. By the time time trading opened the next day that loss was cut to just 4.5%. At the highs of that day, BIDU actually managed to recover all its post-earnings losses. I typically characterize such a recovery … Read more
Two weeks ago, Yelp.com (YELP) confirmed its blow-off top with a break of critical support (see “Chart Review: Yelp.com Confirms Blow-Off Top With A Break Of Support“). That support immediately turned into resistance. After dropping close to post-IPO lows, YELP bounced, only to stop cold at resistance. After reporting earnings, YELP dropped 12% directly from … Read more