ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
In late February, I lamented that TBT, the Pro Shares UltraShort 20+ Year Treasury ETF, was careening toward a retest of the 200-day moving average (DMA) that it would lose. After three more weeks, the anticipated retest finally occurred, and TBT survived. *Chart created using TeleChart: The retest of the 200DMA was a great reminder … Read more
During the last earnings conference call for Evergreen Solar (ESLR), management claimed that the company had the resources to meet its liquidity needs and had enough cash to sustain current and planned burn rates. A little over two months later, ESLR has announced that it is retrenching and shutting down its manufacturing facility in Devens, … Read more
Sheila C. Bair – Will the next fiscal crisis start in Washington? Even as work continues to repair our financial infrastructure and get the economy moving again, we need urgent action to forestall the next financial crisis. I fear that one will start in Washington. Total federal debt has doubled in the past seven years, … Read more
When the Federal government begins its withdrawal from the economy, the implications will be large and the ramifications likely painful. We saw it when Cisco’s stock plunged 16% after reporting earnings partially compressed by a reduction in government contracts. We see it every day as temporary Federal stimulus wanes and takes more and more steam … Read more
Bloomberg summarized the latest missive from Bill Gross in a piece called “Fed Easing to Signify End of Bull Market, Gross Says.” Gross called an end to the 30-year bull market in bonds thanks to the the Federal Reserve’s planned second round of quantitative easing. I decided to read Gross in his own words, and … Read more