ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
I have watched the rare earth (RE) space with a lot of interest over the past 7 months or so. It is an industry where technical knowledge very often translates into effective investment action. I have been very fortunate to have a good friend, whom I consider to be a rare earths specialist, flood me … Read more
Several months ago, I had the opportunity to “talk shop” with a truck driver who specializes household moves. I will call him “Bob.” When Bob discovered that I write a blog dealing with trading and investing in financial markets, he asked me for my forecast for the economy. I did not have anything good to … Read more
Stock Rally Still Hasn't Lured Average Investors From Sidelines – CNBC Retail investors redeemed about $7 billion in equity funds during March—$4.6 billion from mutual funds and $2.4 billion from exchange-traded funds—even as the hedge funds upped their investments, according to TrimTabs. (tags: stock_market trading_strategy)
The S&P 500 has rebounded sharply from its March lows with a 6% gain in a little over two weeks. The short-term uptrend has met very little resistance as buyers have interpreted the recent sell-off as an opportunity to accumulate shares. This move has also flipped T2108, the percentage of stocks trading above their 40-day … Read more
As I watched the U.S. dollar swiftly reverse course after some early post-employment numbers strength, I concluded that this was the final confirmation I needed that the dollar is going much lower from here. I made a point to review my list of commodity charts and then did a quick check of EWZ, the iShares … Read more
The Sun is Rising on Solar Stocks (aka Getting Started Trading Solar Stocks) – by Dr. Duru The solar industry represents an electric convergence of technology, advanced research, energy, environment, credit markets, speculation and politics. This volatile mix represents the opportunity and challenge in trading solar stocks. (tags: solar stock_market trading_strategy energy)
A month ago, I took issue with a UBS downgrade of Amazon (AMZN) and tried to demonstrate how this analyst action and commentary could be twisted into a blueprint for a buying opportunity. At the time, I noted that a test of the November lows on a 13% drop could produce the 8% upside potential … Read more
It appears that coordinated currency intervention has accomplished what unilateral intervention could not – initiate a sustained weakening in the Japanese yen. When the Bank of Japan promised “powerful monetary easing” I quipped: The wordsmiths were working overtime. The BoJ clearly wants to fire as strong a warning as possible to those who insist on … Read more
The stock market is officially tired of worrying about the latest crises around the globe. On Friday, the S&P 500 essentially recovered all of its post-quake losses. The last three days of buying featured low volume (no news there), but the index was still able to hurtle over the presumed resistance at the 50-day moving … Read more
Last week, I suggested that the nuclear power crisis in Japan could usher in a watershed moment for solar energy and its constituent stocks. For all of two days, most solar stocks soared. For example, First Solar (FSLR) gained 14%. However, March 15th marked a sort of peak in the market’s concern over Japan’s nuclear … Read more