ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Overall Assessment I am neutral on KB Home (KBH). The company’s Q2 2019 earnings report offered just enough to erase the negativity going into earnings but offered nothing to ignite renewed upward momentum. The company talked a great game with a lot of bullish commentary but the actual numbers and metrics belie the headlines. KB … Read more
The bullish post-earnings scenario I painted for Apple (AAPL) worked out relatively well in the first day of trading. After AAPL quickly topped out, my proposed strategy for a calendar call spread rapidly transformed from under-performing the benchmark weekly $210 call strategy to outperforming. In the immediate wake of earnings, AAPL gapped over expected $215 … Read more
Last week, I made a bullish case for trading ahead of earnings for Apple (AAPL). My calendar call spread hit its initial profit target and left behind the put spread and a search for a new strategy. Last Friday, CNBC Options Action presented its own bullish case for Apple’s earnings, but I did not like … Read more
It was just this past weekend when I laid out my latest strategy trading Apple (AAPL) pre-earnings including updated historical data. Much to my surprise, my calendar call spread closed out at its pre-earnings profit target as AAPL followed through on Tuesday from Monday’s big 2.3% rebound. (As a reminder, my ideal scenario featured the … Read more
AT40 = 58.4% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = ~52.4% of stocks are trading above their respective 200DMAs VIX = 14.5Short-term Trading Call: neutral Stock Market Commentary A week ago, the S&P 500 (SPY) made a new all-time, and I was expecting a trip into overbought conditions. AT40 … Read more