ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
CNBC’s Maria Bartiromo conducted a great interview with Duncan Niederauer, NYSE Euronext CEO. Niederauer described the technical aspects behind the market crash on Thursday. While he may have been too frank in forecasting “I think it will be pretty ugly tomorrow morning,” his openness gave a revealing look at the technical vulnerabilities of today’s modern … Read more
Earlier this week, I suggested setting up a pairs trade between Goldman Sachs (GS) and Deutsche Bank Ag (DB) to take advantage of an apparent growing divergence in performance between the two financial giants. My main recommendation rested on a put spread for GS and a call spread for DB. After thinking about the structure … Read more
Ever since moving this site to a more standard blog format last September, I have been able to write more articles, more consistently. In that time, I hope I have delivered some value to those listening out there in the blogosphere. Now, it is time for a partial hiatus as I attend to personal and … Read more
Although the S&P 500 almost touched its high for the year on its eighth up day out of the last nine trading days, the VIX (the volatility index) increased almost 4%. So, as the S&P 500 scrapes at fresh 18-month highs, the VIX is bouncing from 21-month lows. The chart below shows the current action … Read more
IMAX sold off almost 10% the day after heavy bullish trading on the stock’s options. This setback proved temporary as IMAX immediately turned around and set fresh 10-year highs on Monday. The chart below shows the recent action: *Chart created using TeleChart: The payoff on the calls has been tremendous so far. The March 15 … Read more