ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The Selling It turns out investors and traders care a lot more about an analyst downgrade than insider selling right under the all-time high….at least when it comes to Roku (ROKU). Morgan Stanley issued a downgrade of Roku from equal-weight to under-weight (aka SELL!) just as the stock market happened to be in one of … Read more
Housing Market Intro/Summary The stocks of home builders are starting to fail their moment of truth. A Moment of Truth Looming Ever Larger On October 25th, the iShares Dow Jones Home Construction ETF (ITB) hit a 21-month high that coincided exactly with a major multi-year peak and post-recession high from January, 2018. The sellers showed … Read more
I have periodically made the case for investing in Invitation Homes (INVH) since its debut in the public markets in February, 2017. The stock was slow-going for two years and even dropped to an all-time low in last year’s stock market sell-off. INVH finally broke out this year. I perked up while watching Nightly Business … Read more
I have written plenty this year about the seasonal top in home builders. I even drew up a game plan to trade this pattern in a way to pay for the bullish trade that opens up during the period of seasonal strength. That seasonal top took its first good hit with a positive pre-earnings announcement … Read more
The Good When Lennar (LEN) reported earnings on June 25th, the stock market responded with the kind of hesitation and whiplash symbolic of the seasonal topping pattern in place for home builders. The first reaction was celebratory as LEN gapped upward and rallied as high 3.6%. The initial reporting on LEN earnings focused on all … Read more