ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The stock market’s bounce from oversold conditions has been as impressive as almost all other such bounces over the past year. I noted in early February that several technical indicators were pointing to a buying opportunity. One of those indicators, the percentage of stocks trading above their 40-day moving averages (also known as “T2108“), is … Read more
Google (GOOG) has had a rough 2010. While the NASDAQ is up 1% for the year, GOOG is down 10%. Buyers have finally flocked to GOOG in the past week as the stock hit oversold levels, and the stock has perked up for the first time in 2010. (GOOG was one of several stocks I … Read more
Gold breaks the rules – MarketWatch "In a world where governments are openly devaluing their fiat currencies in an attempt to ease increasing stimulus debts and increase exports, central banks are figuring out the best way to preserve their wealth: the U.S. dollar and gold. Look for them to trade up together," (tags: gold U.S._dollar)
Interpreting the trading volume in options is typically difficult (I did an analysis in three parts last year). But I am most fascinated when a herd of speculators get caught leaning in the very wrong direction. This is what happened with IMAX. Schaeffer’s Research reported on heavy, bullish activity in the trading of IMAX options … Read more
Hedge funds raise bets against euro – FT.com Hedge funds are raising their bets against the euro amid growing fears of a regulatory backlash against their trading positions on the specific sovereign debt of Greece and other weak eurozone economies. (tags: euro hedge_funds Greece debt) U.S. Said to Tell Hedge Funds to Save Euro Records … Read more