ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Momentum continues to swing swiftly in favor of the bulls. The stock market is now pushing deep into overbought territory just three weeks after it was fashionable again to talk about a double dip recession. Last week, the S&P 500 broke a downtrend I assumed would hold for at least a few more weeks. It … Read more
Graphs depicting economic data can convey different meaning to different people. For example, several models exist to explain economic growth and the variables important for forecasting economic performance. My most recent experience with this dynamic occurred after reading John Maudlin’s latest treatise on the deflationary threat facing the global economy (free subscription required). I remain … Read more
With tongue reaching for the cheek last week, I declared the market both extremely undervalued and very overvalued, guessing that “as earnings season grinds on, I suspect the near-predictable pattern of post-earnings fades will finally wear thin, giving way to more bullish behavior.” I did not expect the turn to happen so clearly and dramatically … Read more
Last week, Wunderlich Securities initiated coverage on Ener1, Inc. (HEV) with a hold rating. HEV designs, develops, and manufactures rechargeable lithium-ion batteries and battery systems for energy storage (from Yahoo! Finance profile). These batteries are used in electric vehicles. Eric Savtiz’s Tech Trader Daily covered the coverage. Wunderlich’s main points are: HEV is a very … Read more
I spoke a day to soon on the bearish downtrend on XLI, the SPDRs Select Sector Industrial ETF. A healthy 3% one-day gain sent the ETF hurtling over resistance and into breakout territory. The next line of resistance is the June high or the “left shoulder” formed in late May/early June, depending on your perspective. … Read more