ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Just ahead of the start of the Apple Worldwide Developers Conference (WWDC), I wrote that I was preparing for a change in Apple’s trading patterns that would impact the Apple Trading Model (ATM). My main interest was in the coming 7-to-1 stock split and the potential for retail traders leaving options alone to trade directly … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. 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 … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on January 26, 2014. Click here to read the entire piece.) It has been eight months since I exited my long position in Herbalife (HLF), but the story continues to fascinate me. This time around, bad news came in rapid sequence for … Read more
Solar City has traded down double digits after each of its three earnings reports: 3/6/2013 -14.4% 5/13/2013 -12.4% 8/7/2013 -10.8% So of course this will happen a fourth time in a row, right? Well, not so fast. The first post-earnings decline simply reversed a pre-earnings run-up. The stock continued upward from there. The second post-earnings … Read more
In previous Apple chart reviews and updates, I have noted the apparent influence of the open interest put/call ratio on the overall bull/bear tone of Apple (AAPL). When the stock last bottomed – between September 16th and 17th – the open interest put/call ratio dropped to a level last seen since, you guessed it, AAPL’s … Read more