ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
(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
Gold is suddenly just about the only asset that is working in financial markets. This fact will likely ignite a positive feedback loop that will send gold parabolic in a matter of time. In “India Gold Imports May Reach a Record“, Bloomberg provides some great statistics from various sources that seem to add weight to … Read more
Finally, silver re-awakens. After a near straight-line recovery from August’s lows, silver broke out with a gap up to new highs for the month. Source: stockcharts.com The ETF for silver, iShares Silver Trust ETF (SLV), is of course following a similar pattern. With silver (and gold) being one of the few assets working on the … Read more
GLD Close to Overtaking SPY as World's Largest ETF – Seeking Alpha At the end of last week’s trading, SPY’s assets had shrunk to about $73.8 billion according to State Street, a result of both sinking asset prices and outflows from the popular equity fund. Interest in gold, meanwhile, was red hot, inflows into GLD … Read more
(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) Apparently, the Federal Reserve cannot print money quite fast enough. On Monday, August 8, the S&P 500 priced in terms of gold finally broke the March, 2009 lows. Source: stockcharts.com (Note that the ratio of … Read more
(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) In Tuesday’s statement on monetary policy, the Federal Reserve decided to reassure markets that interest rates are likely to stay at “exceptionally low levels” at least through the middle of 2013…{snip}…This dramatic change in the … Read more
(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) {snip} …if fear is running rampant in the gold trade, it is not fear of a recession, depression, etc… Instead, it is the fear of former chairman Alan Greenspan – better yet, it is the … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag.) T2108 Status: 6.5% (Day #3 of the current oversold period). VIX Status: 48. General (Short-term) Trading Call: Close most … Read more