ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The Avis Budget Collapse In its earnings report last week, Avis Budget Group, Inc (CAR) shined a spotlight on how the trading activity of Pentwater Capital impacted CAR’s share price. During the conference call, the company described how Pentwater created a massive short squeeze. More importantly, the company called attention to Pentwater’s selling. The hedge … Read more
Housing Market Intro and Summary The housing market is entering its spring selling season, but for me this moment is more about spring cleaning. The seasonal trade in home builders and housing-related optimism has run its course far sooner and far weaker than I expected. What should have been a period of improving momentum has … Read more
The Market Breadth Summary Stock Market Commentary The major indices closed marginally lower for the week, but market conditions deteriorated notably beneath the surface as the AI panic continued to weigh on stocks. The week started off with broad-based selling in the wake of an AI doomsday post from a little known research group called … Read more
Housing Market Intro and Summary The housing market is currently defined by a split between new vs old, new home sales and existing home sales. Data on builder stocks, housing starts, and new home sales tell a diverging story from existing home sales data across the country. Homebuilder equities remain sensitive to policy headlines but … Read more
The SaaSpocalypse, or what I sometimes generally call the AI Panic, is a watershed investing event. Whole fortunes are stumbling down a path of destruction in this moment. Yet, the survivors of this indiscriminate selling will yield tremendous returns in coming years. Panic does not distinguish between fragile business models and structurally durable platforms. In … Read more