ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
After two bullish engulfing patterns, Uber Technologies, Inc (UBER) finally carved out a more lasting, even if sloppy, bottom. A business update at the Goldman Sachs Communacopia Conference provided the catalyst. CEO Dara Khosrowshahi delivered good news across several operational metrics. He also reported that UBER may get to profitability in the current quarter. After … Read more
One of the great features of options trading is the protection it offers against large absolute losses from surprise gaps in price from the underlying stock. That protection came in handy when casino and hotel company Wynn Resorts, Limited (WYNN) gapped down following news of a fresh regulatory crackdown in Macau, China. WYNN gapped down … Read more
A False Breakout I started the week with Micron Technology, Inc (MU) as my favorite trade prospect. The breakout from last week was near poetry. MU enjoyed buying support most of the week as it first pushed through resistance at its 200-day moving average (DMA) (the blue line in the chart below) and next sliced … Read more
The Follow-Through: Quick Hits Weakness still lingers from the oversold bounce, but two trades I mentioned in my last Market Breadth post turned into quick hits in the first two days of trading this week. On Monday, Tesla (TSLA) quickly hit my initial profit target on a calendar call spread. I also snagged the calendar … Read more
The Follow-Through: Churning While the S&P 500 (SPY) cruised higher all week, much of the rest of the market resigned to churning. The dichotomy of a market rebound versus the wounds left to heal continued to play out. Many of the follow-through trades for this week churned with the rest of the stock market. See … Read more