ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Rare earth producer Molycorp (MCP) appears to be on the edge of another big move. A Bollinger Band squeeze is again forming around the stock. A squeeze occurs as volatility decreases, and it typically leads to a burst of higher volatility in the form of a strong move up or down. The chart below uses … Read more
This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) Commodities across the board have suffered mightily during the stock market’s recent correction. In the first phase of the sell-off (from late July to early August), a few commodity-related stocks triggered buys by erasing all … Read more
(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) The U.S. dollar confirmed yet again the importance of its 200-day moving average (DMA). I updated my review of this case two weeks ago by demonstrating in detail how the dollar sustains moves both above … Read more
(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) On Tuesday, September 20, a JP Morgan (JPM) analyst slashed his price target on rare earth producer Molycorp (MCP) from $105 to $66. This reduction in upside from 100% to 25% helped plunge MCP to … Read more
Many technology stocks have rebounded sharply off their August lows. Stocks like Amazon (AMZN) and Apple (AAPL) have even managed to register fresh all-time highs in the past week. On the other hand, Google (GOOG) has gone nowhere in about two years and now faces overhead resistance yet again. In today’s trading, GOOG was turned … Read more
On the morning of September 14, Great Western Minerals Group (GWMGF.PK) President and CEO Jim Engdahl held the company’s fourth CEO conference call. I became interested in Great Western through a friend who follows the rare earths industry very closely. According to the company: “Great Western Minerals Group Ltd. is an integrated Rare Earths processor. … Read more
(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) It took a whole month before the dollar finally launched into the relief rally I thought would soon follow the S&P’s downgrade of U.S. government debt. Even after the Swiss franc’s rein as a “safety” … Read more
(Hat tip to a friend of mine who passed along this news to me and highlighted its significance). On Thursday, Sept 1, Genesee and Wyoming Inc (GWR), finalized its acquisition of Arizona Eastern Railway (AZER) from Iowa Pacific Holdings, LLC of Chicago, IL. GWR paid $90.1M in cash. GWR is a diversified railroad company operating … Read more
(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) While the stock market was oversold, I focused on accumulating beaten-down, commodity-related stocks as part of my “commodities crash” playbook as explained in “Profiting from Physical Assets in a Resource-Constrained World – Rules and Picks.” … Read more
(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) I usually interpret insider buying by company executives as an extremely positive development. However, I am unsure what to think of CEO Mark Smith’s recent purchase of shares of Molycorp (MCP) stock (hat tip to … Read more