ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Florida Atlantic University and Florida International University co-create a “buy versus rent” scoring system called the Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Index. Last month, this index crossed a critical threshold for the first time since 2010: U.S. households are once again better off renting than buying. This cross-over provides further confirmation of … Read more
I saw a flicker of hope for home builders in the May Housing Market Review. Traders decided to snuff that flicker out very quickly afterward. When I wrote June’s housing market review and described a “struggling flicker,” the iShares US Home Construction ETF (ITB) was once again bouncing off the bottom of 2018’s trading range. … Read more
Toll Brothers (TOL) is more than halfway through reversing a surprising post-earnings gap up a week and a half ago. The 13.8% post-earnings gain surprised me because the message from TOL was little different than its messages in the past two earnings reports that have coincided with an extended sell-off in the stock. Source: FreeStockCharts.com … Read more
AT40 = 60.5% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 58.2% of stocks are trading above their respective 200DMAs VIX = 12.0 Short-term Trading Call: neutral Commentary Last week the stock market made history by delivering the longest bull market in history. Tonight on Nightly Business Report, markets are … Read more
AT40 = 55.4% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 56.7% of stocks are trading above their respective 200DMAs VIX = 12.6 Short-term Trading Call: neutral Commentary The recovery from the February swoon has been full of nearly predictable bounces: whether it was oversold trading conditions or support at … Read more
Redfin (RDFN) may have provided one of the first validations of the (presumed) investor fears that have weighed down the stocks of home builders since the February sell-off. In its last earnings report on August 9, 2018, RDFN provided this brief, yet significant, warning: “We expect U.S. home sales growth to slow and even perhaps … Read more
AT40 = 51.6% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 55.3% of stocks are trading above their respective 200DMAs VIX = 13.2 Short-term Trading Call: neutral Commentary The indicators barely changed from the last Above the 40 post, but the technical winds are likely changing yet again. A little … Read more
I saw a flicker of hope for home builders in the May Housing Market Review. Traders decided to snuff that flicker out very quickly afterward. When I wrote June’s housing market review and described a “struggling flicker,” the iShares US Home Construction ETF (ITB) was once again bouncing off the bottom of 2018’s trading range. … Read more
AT40 = 57.6% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = N/A% of stocks are trading above their respective 200DMAs VIX = 12.9 Short-term Trading Call: neutral Commentary I remain fascinated by the S&P 500’s increasing resilience to worsening macro-economic headlines. The apparent boredom with the headlines about trade wars, … Read more
I saw a flicker of hope for home builders in the last Housing Market Review. Traders decided to snuff that flicker out very quickly afterward. Breakouts transformed into new tops and now the struggling flicker comes from home builder stocks holding support. The short-term path ahead looks like chop at best, especially with the latest … Read more