ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The last Housing Market Review covered data reported in February, 2018 for January, 2018. At the time, I connected the dots on the bearish implications of converging technicals and fundamentals. The iShares U.S. Home Construction ETF (ITB) broke down below its 200-day moving average (DMA) in a very bearish move. Yet, the very next day, … Read more
Over the last two earnings reports, Intel (INTC) experienced historic 1-day gains. For January earnings that reported on Q4 results, INTC enjoyed a 10.7% gain the next day. For October earnings that reported on Q3 results, INTC enjoyed a 7.4% pop. These 1-day post-earnings gains were Intel’s 3rd and 7th highest 1-day post-earnings gains since … Read more
For the second time in a row, KB Home (KBH) is struggling to benefit from a strong earnings report. In January, investors rushed into the stock post-earnings only to create a massive blow-off top. In March, sellers started fading the stock on the same day of the initial post-earnings pop. Last week, KBH broke down … Read more
About 18 months ago, I made a bearish case for Acacia Communications (ACIA) based on the timing, pricing, and nature of a secondary stock offering that was sandwiched between ACIA’s optimistic earnings guidance and subsequent news that major customer ZTE Corp. significantly reduced its guidance. The stock has never been the same and has drifted … Read more
Two weeks ago I expressed concern about the poor performance of the materials sector. The sector was under-performing the general market which seemed particularly ominous given the generally strong outlook for the economy. At the time, I expressed my hope that another interview with Bill Sandbrook, CEO of U.S. Concrete (USCR), would clear the air … Read more
Source: CNBC Ever since LongFin Corp. (LFIN) soared astronomically four days into its stint as a publicly traded company, I have been fascinated by the story. At the time I covered the story, I wrote: “The trading in recent IPO LongFin Corp. (LFIN) may go down as iconic in this era of frenetic trading in … Read more
The ink just dried on my last Housing Market Review. In that piece I lamented the on-going lagging performance of home builders and stagnating housing housing data, and thus concluded that it was time to call an end to the seasonal trade on home builders. Just two days later, home builders surged upward in sympathy … Read more
I had high hopes for Meritage Homes (MTH) before and after the company reported earnings last month. Home builders were leading the market into a big sell-off, and I expected MTH to set the record straight on the health of the housing market. The headline earnings were solid but not quite inspiring enough. The stock … Read more
AT40 = 67.0% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 65.2% of stocks are trading above their respective 200DMAs (a TEN MONTH HIGH) VIX = 11.1 Short-term Trading Call: bullish Commentary Once again the stock market was only able to maintain overbought trading conditions for 1 day. At the … Read more
KB Home (KBH) reported earnings last week on January 10, 2018. The reaction the next day was outright startling. The stock gapped up and did not stop rallying until it finished with a 12.3% gain and a new 10 1/2 year high. Source: FreeStockCharts.com I was so taken aback that I checked on the historical … Read more