ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
A little over two weeks ago I pointed out that it looked like TBT, the ProShares UltraShort 20-Year Treasury, had finally bottomed. TBT broke out from an extended consolidation pattern that is the classic hallmark of a sustainable bottom. On Friday, TBT surged 3.3% after having erased all the gains from the breakout. TBT made … 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: 54% VIX Status: 15.5% … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on March 26, 2012. Click here to read the entire piece.) According to ETF Channel, Best Buy (BBY) is the second largest holding of the SPDR S&P Retail ETF (XRT). Yet, BBY is greatly underperforming this retail ETF. While XRT is at … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on March 26, 2012. Click here to read the entire piece.) Despite an improving outlook for KB Home (KBH), the stock sold off post-earnings on Friday. KBH dropped 8.5% for the day after dropping as much as 15.0% and after closing the … Read more
Last week I asked whether time is running out for the Australian dollar versus the British pound. Apparently, the answer is yes. The very next day, the GBP/AUD currency pair surged upward through the previous trading channel. Only the 200-day moving average (DMA) stopped the momentum. But even that reprieve looks very temporary. As of … Read more