ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The Relationship At its height last March, the U.S. Global Jets ETF (JETS) still could not close all its pandemic-driven losses. JETS was a 5.9% gain from finally returning to where it last traded at its 200-day moving average (DMA) (the blue line in the stock chart below). Similarly, the number of travelers at U.S. … Read more
A Fresh Crack from the Currency Market At the time of writing, the Australian dollar versus the Japanese yen (AUD/JPY) is falling below its 50-day moving average (DMA) (the red line in the chart below) for the first time since last September. This move is the latest yellow, perhaps red, flag on the stock market … Read more
I sent an email to all One-Twenty Two subscribers letting them know that I switched email services from Google’s Feedburner to MailPoet. The process requires that all subscribers reconfirm their interest in the list. This is an opt-in process. If you do nothing, you will no longer receive email notifications from One-Twenty Two or from … Read more
ReneSola (SOL) is down 64.9% from its near 10-year high set in January. The company celebrated that high by announcing a secondary stock offering…its fifth in 4 months. SOL came back stronger and better from the first four secondaries of the series. The fifth secondary stock offering finally broke the bank (meaning ReneSola overwhelmed the … Read more
As highly anticipated, medical device maker Soliton (SOLY) announced the company received approval from the FDA for the cellulite indication of its Rapid Acoustic Pulse (“RAP”) technology. SOLY initially opened on February 1st with a 17.3% gain, but the stock ended the day with a 3.6% gain. Why did Soliton sell off after this good … Read more
A stock offering is an opportunity for a publicly traded company to raise money for corporate investment, strengthening the balance sheet, and/or funding operations. Insider shareholders can also sell their shares to the public through a stock offering. Like any seller, these parties want to maximize the money generated from the stock sales. As a … Read more
U.S. traders and investors often but into or at least largely ignore news of anti-trust actions against publicly traded companies. Alibaba Group Holdings (BABA) was not as fortunate at least for today. Alibaba stock plunged as much as 17.5% before closing with a 13.3% loss in the wake of news that the State Administration for … Read more
“One-Twenty Two” is a different narrative for students and fans of financial markets. This blog often examines the investing and trading implications of extremes in financial markets. By definition, an extreme condition marks a top or a bottom in prices and invites contrary thinking. For example, the cyclical concepts of “overbought” and “oversold” measure temporary … Read more
The Misdirection The New York Times (NYT) created buzz with a report alleging that members of the Trump administration enabled “elite traders” to profit off the coronavirus-driven collapse in the stock market. While the administration confidently reassured the public about the coronavirus (COVID-19), members of the administration reportedly shared their concerns about “uncertainties” at a … Read more
When the stock market last flipped to oversold trading conditions, I expected at least one more spike in the volatility index (VIX) before oversold trading ended. I define oversold as a period of trading in the stock market when AT40 (T2108), the percentage of stocks trading above their respective 40-day moving averages (DMAs), closes below … Read more