ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The S&P 500 is now over 4% off the lows from oversold conditions. 40% of this entire move came on today’s surge as the dollar plunged over 1% versus the euro. The thrills occurred DESPITE poor news flow from the Greek sovereign debt drama: for example, imminent strikes to protest austerity measures and German hesitancy … Read more
“The rich rule over the poor, and the borrower is servant to the lender.” (Proverbs 22:7, New International Version) This proverb is understood all too well by anyone who has become impoverished by severe indebtedness. I thought of this proverb as I read a Reuters article titled “Eurozone gives Greece 30 days to show good … Read more
Research In Motion (RIMM) is riding a bit of upward momentum into this week’s Mobile World Congress conference in Barcelona. The chart below shows that RIMM has broken above the 200-day moving average (DMA) on above average volume. If RIMM finally breaks the $72 resistance line, it could run up relatively quickly to fill September’s … Read more
Obama: US Must Go Through Budget And Save Money – CNBC President Barack Obama Saturday touted the importance of long-term deficit reduction, saying the United States must go through its budget line by line and figure out ways to save money. (tags: Obama govt_spending) No Love Lost Between Dubai World, Bankers on Deal Talk – … Read more
On January 28, QUALCOMM (QCOM) disappointed the market by guiding earnings and revenue expectations down for its fiscal second quarter (pro forma EPS of $0.49-0.53 vs. $0.57 consensus and $2.4-2.6B in revenue vs. $2.75B consensus). The stock closed down 14% on the day on over 6x the 3-month average volume. This surge of selling represented … Read more
Greece Remains a Political Time Bomb – Inner Workings Although Greece is an EC member, its finances and political system have the character of a banana republic. EC membership, though, enabled Greece to borrow far more money than any banana republic, such that the country’s debt-to-GDP ratio is about triple that of Argentina just before … Read more
Citi Unveils Deed in Lieu of Foreclosure Program – WSJ The CitiMortgage pilot program provides incentives for more borrowers to use a procedure known as a “deed in lieu of foreclosure,” in which the borrower voluntarily transfers ownership of the home to the lender, which then cancels the mortgage debt. Aside from letting such people … Read more
Nowhere is a destination for the average solar stock these days. For example, TAN, the Claymore/MAC Global Solar Energy ETF, has been stuck in a trading range since May of last year. 16 months ago, TAN was selling at the current price of $8.33/share. This dramatic under-performance (for example, relative to the S&P 500) will … Read more
Don't expect market bounce to last, technician John Roque says Whatever the outcome of Europe's debt crisis, "we don't think this bounce is going to be long lived," says our guest John Roque, technical analyst at WJB Capital Group. (tags: trading_strategy technical_analysis) FRB: Testimony–Bernanke, Federal Reserve's exit strategy–February 10, 2010 Federal Reserve's exit strategy (tags: … Read more
INTRODUCTION When I first picked up “Making Sense of the Dollar: Exposing Dangerous Myths about Trade and Foreign Exchange” by Marc Chandler, I thought it would unlock dark secrets explaining how and why the dollar has generally declined for the past ten years. I was disappointed to discover that Chandler is actually extremely bullish on … Read more