ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
T2107, the percentage of stocks trading above their respective 200-day moving averages has been in decline since reaching a quick post-recession peak in late 2009. It is one sign that fewer and fewer strong stocks are supporting the overall stock market. So when the indicator takes a fresh plunge to the downside, I sit up … Read more
Every now and then I see a chart that undermines my expectation for an imminent pullback in the general market. This time, Goldman Sachs (GS) delivered the reluctant surprise. Today, the stock surged 5.2% to fresh 6-month highs. Source: FreeStockCharts.com This is what I had to say about GS in late January during a comprehensive … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on February 7, 2012. Click here to read the entire piece.) Lender Processing Services (LPS) has gained 31% year-to-date. This jump follows the activity of intrepid traders/investors who loaded up on LPS June $21 call options in December – these call options … Read more
According to “Building a Better America One Wealth Quintile at a Time” by Dan Ariely and Michael I. Norton, Americans are generally misinformed about the true distribution of wealth in America. Robert Reich’s “Aftershock: The Next Economy and America’s Future” represents an insightful and creative approach to educating the reader on income inequality and potential … Read more
In late October, I claimed that Goldman Sachs (GS) had finally found a bottom after two years of mostly declining prices. It has been all downhill for GS ever since. The chart below shows the signals I used to decide GS had finally printed a bottom. Note that on November 9, GS sliced cleanly and … Read more