ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
(This is an excerpt from an article I published on Seeking Alpha. Click here to read the entire piece.) After listening to Research In Motion’s conference call explaining the company’s downward guidance Thursday night, I thought I would write a piece just as bullish as management’s insistence that longer-term upside prospects remain unchanged. However, writing … Read more
Resist the madness of the crowd – investing psychology – MSN Money …what is required to make money is not a change in the business, but rather a change in the perception of that business. And if you are lucky enough to get both, you can benefit from a double whammy, as the earnings and … Read more
(This is an excerpt from an article I published on Seeking Alpha. Click here to read the entire piece) Perhaps it is not a good idea to use the term “watershed” twice in a year when referring to solar stocks, but it seems to me that Total Group’s acquisition of a 60% controlling stake in … Read more
Every now and then, I check in on the chart of Goldman Sachs (GS) as a potential indicator of the underlying health of the stock market. This year, I have been consistently surprised at Goldman’s persistent relative weakness compared to the general market. After recently refreshing my chart of the S&P 500 price in gold, … Read more
With the S&P 500 hitting fresh 3-year highs this week, the index is poised to recapture the previous uptrend that was interrupted by March’s double calamities of the Japan earthquake and hostilities in Libya. The stock market is overbought with T2108, the percentage of stocks trading above their respective 40-day moving averages (DMAs), at a … Read more
Gold Luring Central-Bank Buyers May Extend Record Rally – Bloomberg Central banks that were net sellers of gold a decade ago are buying the precious metal to reduce their reliance on the dollar as a reserve currency, signaling demand that may extend a record rally in prices. (tags: gold monetary_policy central_banks) Adjusted For Inflation, Dollar … Read more
Excerpt from an article I published on Seeking Alpha. Click here to read the entire piece: Three months ago, LDK Solar (LDK) wowed the market with a tremendous hike in guidance for both the fourth quarter of FY10 and the entire FY2011. The stock closed up 18% on the day. LDK went on to retest … Read more
I have questioned the finances and balance sheet of Evergreen Solar (ESLR). I have claimed that betting on ESLR is a speculative bet on survival. I used a pullback from the stock’s last big rally as an entry to make that crazy boom or bust bet. Now, I must prepare for the very real possibility … Read more
Buyers Beware: Silver Crashed 11% in 24 Hours – CNBC Shortly after the start of overnight trading at 12:10 a.m. on Monday, silver futures surged to a multi-year high of $49.82 per ounce. Nine hours later, by the start of stock market trading in the U.S., the May Silver contract was down eight percent. Shortly … Read more
Excerpt from an article I published on Seeking Alpha. Click here to read the entire piece: Google (GOOG) is down 9.2% since reporting earnings April 14 and now sports a forward earnings multiple of 13. At $525, GOOG is at 7-month lows and is again close to the psychologically significant $500 price level. This combination … Read more