ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
(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
(This is an excerpt from an article I originally published on Seeking Alpha on May 31, 2012. Click here to read the entire piece.) {snip} Since a spate of heavy call buying in February, short interest has taken a fresh plunge. It has now returned to levels last seen right before foreclosuregate exploded. Source: NASDAQ.com … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on May 29, 2012. Click here to read the entire piece.) {snip} JOY reports earnings on the morning of May 31st with its stock struggling to stay above 2011 lows. The weekly chart shows how for a second time JOY has lost … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on May 18, 2012. Click here to read the entire piece.) Amazon.com (AMZN) reported earnings April 26th and soared in the after-hours about 22%. At the time, I decided to call an “audible” on the AMZN post-earnings play and avoid the trade … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on May 17, 2012. Click here to read the entire piece.) The past three earnings cycles have delivered some tremendous post-earnings successes in stocks like Amazon.com (AMZN), priceline.com (PCLN), Best Buy (BBY), and Apple (AAPL). J.C. Penney (JCP) broke my streak in … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on May 9, 2012 PRE-EARNINGS. Click here to read the entire piece.) {snip} In 2010, PCLN finally overtook Expedia (EXPE) in revenues. Click image for a larger view… Source: MSN Money {snip} With earnings coming up for PCLN, and given recent successes … Read more