ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
ReneSola (SOL) is down 64.9% from its near 10-year high set in January. The company celebrated that high by announcing a secondary stock offering…its fifth in 4 months. SOL came back stronger and better from the first four secondaries of the series. The fifth secondary stock offering finally broke the bank (meaning ReneSola overwhelmed the … Read more
Stock Market Commentary The stock market got quite tricky last week. A day after buyers re-established control, sellers returned with a sustained fury. The selling on Thursday reflected the stock market’s split personality while the follow-up selling on Friday seemed broader. The pressure on the the stock market looks like an ominous setup for March … Read more
Stock Market Commentary The split personality of the stock market resolved into major breakdowns in the stock market on Tuesday…for about 30 minutes. Apparently increasing inflation fears gave way to the soothing words of Federal Reserve Chairman Jerome Powell at the Fed’s semiannual monetary policy report to Congress. Buyers quickly met the latest sharp and … Read more
Stock Market Commentary The week ended with a split personality. While the S&P 500 meandered and the NASDAQ flattened, small caps rebounded convincingly. Financials also forged ahead. As a result, the recent end to overbought conditions may only signal (mild) bearish conditions for a portion of the stock market. The Stock Market Indices The S&P … Read more
If the housing market remains strong through 2021, Meritage Homes (MTH) may be one of the best catch-up trades in the cohort of major home builders. MTH hit an all-time high 4 months ago in October. Since September, MTH’s valuation has dropped from 2.0 (expensive!) price/book to 1.4, 1.1 price/sales to 0.7, 12.8 to 8.1 … Read more