ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
MEMC Electronic Materials (WFR) manufactures silicon wafer solutions for the semiconductor and solar industries. WFR fell 19% on Friday in response to earnings despite the company’s reassurances that it is on track to meet full-year guidance targets (click here for the transcript from Seeking Alpha): “In the first quarter, revenue was ahead of our internal … Read more
Papandreou Says Greek ‘Survival’ at Stake in Talks (Update1) – Bloomberg.com Greek Prime Minister George Papandreou said the country’s survival was at stake in talks to win a potential $159 billion European Union-led bailout in exchange for budget cuts denounced by unions as “savage. (tags: Greece debt default)
Earlier this week, I suggested setting up a pairs trade between Goldman Sachs (GS) and Deutsche Bank Ag (DB) to take advantage of an apparent growing divergence in performance between the two financial giants. My main recommendation rested on a put spread for GS and a call spread for DB. After thinking about the structure … Read more
Spanish Unemployment Rate Tops 20%, Undermining Deficit Fight – Bloomberg.com Spain’s unemployment rate rose above 20 percent for the first time in more than a decade, undermining Prime Minister Jose Luis Rodriguez Zapatero’s fight to cut the euro region’s third-largest budget deficit. (tags: Spain unemployment debt) Federal Prosecutors Open Inquiry into Goldman Trading – CNBC … Read more
My earnings play on First Solar (FSLR) unfolded much better than expected today. The post-earnings pop took FSLR directly to my standing $149/150 price target that represents a fill of the earnings gap from October. See chart below: *Chart created using TeleChart: I believe the biggest catalyst for today’s 18% move was FSLR’s tremendous boost … Read more