ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Ahead of Starbucks’ July earnings report, I warned that the stock was at a critical juncture. I concluded that Starbucks (SBUX) becomes a compelling short if it broke down through support. On Friday, SBUX broke down and at one point had erased all its gains for the year. Source: FreeStockCharts.com The -9.4% post-earnings performance was … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on July 25, 2012. Click here to read the entire piece.) Cognizant Technology (CTSH) has been one of those rare stocks over the decade that investors could just buy and hold. So when CTSH lost a nasty 19% on May 7th after … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on July 22, 2012. Click here to read the entire piece.) With an increasingly dour macro-economic backdrop, one might expect a very large response to Apple’s July earnings report {snip}… However, the trading action going into Tuesday evening’s earnings report was very … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on July 20, 2012. Click here to read the entire piece.) Spotting anomalies and/or extremes continues to provide a key catalyst when it comes to trading earnings. On July 18th, I issued a series of tweets describing a potential bullish setup to … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on July 7, 2012. Click here to read the entire piece.) Kb Home (KBH) has finally recovered most of its losses following its March 23rd earnings report. On that day, the market took KBH down 8.5% in response to those earnings, but … 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-related trades and other trades are posted on twitter using the #120trade hashtag) T2108 Status: 76.6% (5th overbought day) … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on June 18, 2012. Click here to read the entire piece.) On June 5, 2012, Fastenal (FAST) dropped 9.8% in response to its May sales report. This sharply negative reaction got my attention because Fastenal’s industrial and construction supplies business should be … Read more
The opportunity to go short on Amazon.com (AMZN) was short-lived. Just last week I pointed out how AMZN triggered a post-earnings short again. I missed the first breakdown and was looking to play a second move down. It was not to be. Instead, on Monday, AMZN flipped back into bullish territory. I followed suit by … Read more
On May 18th, I wrote that Amazon.com (AMZN) had triggered a post-earnings short by closing below the low of trading in the immediate aftermath of the last earnings report (at $220). However, I did not recommend pulling the trigger because the market was oversold at the time. Surprisingly, AMZN did not benefit from the market’s … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on June 1, 2012. Click here to read the entire piece.) On Tuesday, May 29, I described a trade on Joy Global (JOY) earnings featuring a bullish bias with a hedge. {snip} JOY ended up disappointing investors… {snip}… Investors and traders clearly … Read more