ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
By now, everyone has noticed that the inverse relationship between the stock market and the U.S. dollar has broken. For December, the U.S. dollar index is up a healthy 4.7% while the S&P 500 is up 2.1%. I created two charts to demonstrate the dramatic nature of the change relative to trading before December. The … Read more
Today, Google (GOOG) closed above $600 for the first time since January, 2008. This milestone places the stock right at the minimum price target I estimated for the GOOG post-earnings trade. With a month remaining before January options expiration and the stock market stuck on “cruise control” for now, I believe I have much more … Read more
A Rising Euro Poses a Threat to Parts of Bloc – WSJ.com The euro is overvalued by between 7% and 8% relative to other major currencies, and a further rise could be a "serious concern" for the more open euro-zone economies, the European Commission said. (tags: currency euro Europe) Bonds Are Signaling a Stronger Recovery … Read more
I Am a Death Panelist. I Am Not the Problem. – Economix Blog – NYTimes.com …among health economists there is near universal agreement that about 30 percent of health care spending — more than $700 billion a year — does no good. (tags: health_care)
In “That’s one long gold bubble,” Tim Ianaco created an illustrative animated graphic from Google news archives comparing the news coverage of “housing bubble,” “credit bubble,” and “gold bubble.” He rightfully observes the following: “…my understanding of how bubbles work is that they materialize rather quickly, fueled by media coverage toward the end and then … Read more
Last night, Research In Motion (RIMM) released an earnings report that exceeded analyst expectations, produced strong guidance, and was well-received by the market. I took particular interest in RIMM’s share repurchase activity. RIMM used $775M to purchase 12.3M shares at an average price of $63 per share (full details noted in Seeking Alpha’s transcripts of … Read more
LDK Solar (LDK) dropped 15% today as the company announced it will issue 18.9 American Depository Receipts as part of a larger bid to remain a going concern. LDK filed a 6K with the SEC summarizing its problems with cash flow, and its plan to arrest its descent into bankruptcy. The introduction states: “We are … Read more
Public Debt Risk Rising, Turbulent Year Ahead: Moody's Sovereign debt risk is rising globally, particularly in the United States and United Kingdom, which must outline plans to manage public debt or face ratings deterioration as soon as 2011, Moody's global head of sovereign ratings said on Monday. (tags: debt govt_spending) So Why Did Abu Dhabi … Read more
China to pass India as world's top gold market – GFMS | Business News | Reuters China will overtake India as the world's largest gold consumer in 2009, with total demand forecast at 432 tonnes as wealthy investors defy record bullion prices, metals consultancy GFMS said on Friday. (tags: gold China India)
“Tricks are for kids he plays much gigs He’s a big bad wolf and you’re the three pigs He’s a big bad wolf in your neighborhood Not bad meaning bad but bad meaning good“ “Peter Piper” – Run D.M.C., 1986 from the album “Raising Hell” What was once bad is now good. Or maybe what … Read more