ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The shellacking of Facebook (FB) for over a week of scandal-ridden headlines has created that rare beast in the jungle of tech stocks: a “value” play. Facebook has a trailing P/E of 29.6 and a forward P/E of 17.9. Quarterly earnings growth is running at 19.6% year-over-year. According to briefing.com year-over-year revenue growth has run … Read more
This week, I blithely accumulated call options on Goldman Sachs (GS) ahead of and after the Federal Reserve’s latest declaration on monetary policy. I assumed that the Fed’s calming influence would remind market participants that the economy is fine and the prospects are good. Under that scenario financial stocks would do well as long-term interest … Read more
AT40 = 42.9% of stocks are trading above their respective 40-day moving averages (DMAs) (traded as low as 37.6%) AT200 = 47.9% of stocks are trading above their respective 200DMAs VIX = 19.0 (traded as high as 21.9) Short-term Trading Call: neutral Commentary In my last Above the 40 post, I described how the stock … Read more
AT40 = 49.0% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 50.1% of stocks are trading above their respective 200DMAs VIX = 15.8 Short-term Trading Call: bullish Commentary Another proclamation on monetary policy from the Federal Reserve is just 3 trading days away. Hanging in the balance is the S&P … Read more
Five months ago, I made the case for bottom-fishing in DexCom (DXCM) following the news of competitor’s Abbott (ABT) product approval. The trade was looking shaky a few weeks later when the stock made a minor new closing low from that price collapse. November earnings produced the catalyst to confirm the bottom, and the stock … Read more
AT40 = 39.3% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 49.7% of stocks are trading above their respective 200DMAs VIX = 17.8% Short-term Trading Call: neutral Commentary “Dear President Trump: We are writing to express deep concern about the prospect of broad, global tariffs on aluminum and steel imports. … Read more
AT40 = 14.6% of stocks are trading above their respective 40-day moving averages (DMAs) (day 2 oversold) AT200 = 31.4% of stocks are trading above their respective 200DMAs (near 2-year low) VIX = 29.1 (range from 27.7 to 41.1) Short-term Trading Call: bullish Commentary Friday’s classic battle between buyers and sellers delivered a (short-term?) market … Read more
AT40 = 12.5% of stocks are trading above their respective 40-day moving averages (DMAs) (day 1 of the second oversold period in 4 days) AT200 = 39.2% of stocks are trading above their respective 200DMAs (near 2-year low) VIX = 33.5 (range from 24.4 to 36.2) Short-term Trading Call: cautiously bullish (with oh so many … Read more
AT40 = 24.1% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 47.4% of stocks are trading above their respective 200DMAs VIX = 27.7 (range from 21.2 to 31.6) Short-term Trading Call: neutral Commentary Buyers failed their first post-oversold test. The S&P 500 (SPY) rallied just enough to peak over resistance … Read more
AT40 = 23.4% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 47.8% of stocks are trading above their respective 200DMAs VIX = 30.0 (19.7% decrease, intraday high of 50.3) Short-term Trading Call: neutral Commentary The first oversold period in about two years ended after just one day. As a reminder, … Read more