ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
When I made the case for buying CSCO after its earnings disaster in November, I was bracing myself for an extended stay at or near 52-week lows. I even planned to add more on a steep enough decline. After two weeks of slowly drifting downward, CSCO made a bottom. The stock is now climbing out … Read more
On Wednesday, Wunderlich Securities issued a trading call on solar stocks citing a correlation with oil prices. First Solar (FSLR) was the prime beneficiary of this research. Eric Rosenbaum from TheStreet.com beat me to the punch critiquing this call in “Should Solar Stocks Trade on Rising Oil?“, but I will add my two solar panels … Read more
I did not think the dollar would test the critical multi-year support line this soon. I thought the prospects for an economic recovery that is looking stronger than in competing developed economies would be sufficient to give the dollar a helping hand up despite the Federal Reserve’s best attempts to keep grinding the currency into … Read more
The iShares MSCI Brazil Index Fund ETF (EWZ) broke out in early September, 2010 from an important downtrend pattern. At the time, I lamented that I missed the move because I was still playing the strategy of waiting for a 20% correction in EWZ before making a purchase. On Friday, EWZ completed a roundtrip from … Read more
When Ener1 (HEV) chairman and CEO Charles Gassenheimer appeared on CNBC in November to discuss how his company will benefit from Democrat and Republican cooperation on energy policy, the stock got a nice 4% pop on the day. Last week, HEV announced a major joint venture deal with China’s number one automotive components company Wanxiang … Read more