ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Ahead of last week’s big events, I suggested that the market was setting up for a surprise reaction. So far, the biggest surprise has been the timing of the market’s big rally reaction after the election and the Federal Reserve’s announcement of quantitative easing and before the unemployment report. But that is not the surprise … Read more
Ben S. Bernanke – What the Fed did and why: supporting the recovery and sustaining price stability While they have been used successfully in the United States and elsewhere, purchases of longer-term securities are a less familiar monetary policy tool than cutting short-term interest rates. That is one reason the FOMC has been cautious, balancing … Read more
Integrated solar manufacturer ReneSola Ltd. (SOL) reported strong earnings results Friday morning. The summary from the company’s presentation says it all: SOL’s push downstream into the module production business has had a very positive impact on the business. Revenue and earnings growth accelerated in the third quarter. (Click for a larger view – I highly … Read more
Intel (INTC) and Microsoft (MSFT) have been tech laggards for some time now. However, over the past week, both stocks finally breached the all-important 200-day moving average (DMA) line of resistance (charts at the end of this piece). While MSFT is struggling to add to its small post-earnings gains, INTC has completely reversed the post-earnings … Read more
Like my friend TraderMike, I am extremely surprised at the timing of the market’s latest breakout. I too would have thought a breakout would come immediately after one of our three main news items of the week, not in between! I agree with TraderMike that the nature of this breakout leaves open the real possibility … Read more