ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The recent batch of internet IPOs are collectively running into hard times these days despite the imminent introduction of Facebook (FB) to the public markets. On April 9, I noted a likely blow-off top in Yelp.com (YELP). Friday’s break of critical support all but confirms the top. I have updated the chart with the new … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on March 30, 2012. Click here to read the entire piece.) After traders packed up for the weekend, Groupon (GRPN) issued two warnings during the evening of March 30th. First, Groupon discovered it under-estimated its refund rate for the previous quarter. As … Read more
In mid-February, I posted Groupon (GRPN) as a bearish post-earnings play (see “Groupon Loses Gains From Facebook IPO Hype And Put Options Soar“). At the time, I claimed that the stock would linger around its $20 IPO price for a while after the immediate post-earnings selling. Sure enough, GRPN hung around $20 for another two … Read more
On a big down day in the general stock market, Zynga (ZNGA) managed to gain a fraction of a percent today. The stock punctured support from the current uptrend line but quickly bounced back. Although the stock now needs to clear fresh all-time highs to invalidate the bearish “abandoned baby top” I pointed out yesterday, … Read more
Zynga (ZNGA) has established itself as a resilient IPO so far. After an IPO on December 16, 2011 at $10/share, an open at $11, and a high of $11.50, ZNGA quickly sold off as low as $7.97 on January 9, 2012. From there, the stock rallied in almost a straight line, receiving a turbo boost … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on February 21, 2012. Click here to read the entire piece.) Congratulations to everyone who took on the post-earnings trade on Amazon.com (AMZN). Hopefully, you have locked in your profits by now given the 2-week timeframe for the trade. It is now … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on February 13, 2012. Click here to read the entire piece.) When Facebook filed its IPO papers with the SEC on February 1, the news lit a rocket under almost all things internet. Stocks across the industry got revalued just because Facebook … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on February 1, 2012. Click here to read the entire piece.) Trading through the earnings of a highly volatile stock often feels like flipping a coin. A trader must try to predict the earnings results AND the market’s reaction to those results. … Read more
The current extended overbought period has produced many amazing chart patterns. In this chart review, I am highlighting some charts I find particularly interesting and compelling. There are impressive recoveries, stocks dancing with critical resistance, and emerging breakouts. Some charts are quite telling in that they completely contradict the presumed economic disaster from an imminent … Read more
(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: 44% VIX Status: 31 … Read more