ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The Washington Post issued an alarming article today titled “Housing Agency’s Cash Reserves Will Drop Below Requirement.” In what seems like yet another case of “here we go again,” Federal Housing Authority (FHA) Commissioner David H. Stevens tells us not to worry about his agency’s dwindling reserves even as mortgage delinquencies rise. The Post explains … Read more
Last week I decided to short the pound vs the U.S. dollar despite the fact that the relief rally I expect in the dollar had not yet begun. One week later, there remains no relief in sight for the dollar, but the pound has fared even worse. I am of course grateful that I chose … Read more
I know it seems strange that on another day when it seems like stocks are destined for infinite glory that I am adding to my existing holdings in TIP, the iShares Barclays TIPS Bond Fond (TIPS = Treasury Inflation-Protected Securities). I also remain overall bearish so a steep correction in the stock market will probably … Read more
My brother and I go back and forth in our discussions about the dynamics of the housing industry. He is good on the fundamentals, and I substitute my weakness on the fundamentals with technical analysis, sentiment analysis, and the information I can glean from earnings calls. Today, he wrote out his latest case for the … Read more
Last week, I noted heavy call activity in MEMC Electronic Materials (WFR) that was notable enough to lure me into buying. Today, WFR continued its impressive recovery from an earnings warning with an 8% one-day pop giving it a 17% run since the close following warning. Briefing.com attributed today’s trading to takeover speculation. Whatever the … Read more