Soliton: How to Trade A Secondary Stock Offering

Last week, I anticipated that Soliton would announce a secondary offering of stock following the release of a successful trial of its cellulite treatment. Soliton (SOLY) delivered with after hours news of a secondary stock offering in the form of an SEC filing. So now what? At the time of writing, traders responded to the … Read more

Bottoming U.S. Dollar Ends Bargain Shopping in Mexican peso, South African rand

The U.S. dollar index (DXY) continues to pivot around its 200-day moving average (DMA). Last week, the U.S. dollar bounced before retesting the lows from March. The U.S. dollar now looks ready to challenge its 200DMA as resistance; it will likely complete another cycle by rallying at least to the previous highs above the 200DMA. … Read more

Support for Another Round of Overbought Conditions in the Stock Market – Above the 40 (June 13, 2020)

Stock Market Statistics AT40 = 74.1% of stocks are trading above their respective 40-day moving averages (DMAs) (first overbought day, 17 of last 19 trading days overbought)AT200 = 22.6% of stocks are trading above their respective 200DMAs VIX = 36.1 (down 11.5%)Short-term Trading Call: cautiously bullish Stock Market Commentary In the last Above the 40 … Read more

Airline Stocks: Trading Ideas After the End of Parabolic Moves

The U.S. Global Jets ETF (JETS) lost 7.5% but held on to support at bottom of its upper Bollinger Band channel.

Airline stocks were on a tear during a week of panic buying and catch-up trades. From worst to first, in less than a month airline stocks went from setting fresh multi-year lows to 3+ month highs on the heels of parabolic moves. The U.S. Global Jets ETF (JETS) summarizes the contours of the moves. From … Read more

Stock Market Breaks Out to Overbought Territory Yet Again – Above the 40 (May 18, 2020)

Stock Market Statistics AT40 = 75.0% of stocks are trading above their respective 40-day moving averages (DMAs) (first oversold day)AT200 = 18.4% of stocks are trading above their respective 200DMAsVIX = 29.3Short-term Trading Call: neutral Stock Market Commentary Buyers followed through on the building momentum from the previous two trading days which drew a line … Read more

A $2.3 Trillion End to An Extreme Oversold Period in the Stock Market – Above the 40 (April 10, 2020)

AT40 = 24.4% of stocks are trading above their respective 40-day moving averages (DMAs) (ended 31-day oversold period)AT200 = 10.9% of stocks are trading above their respective 200DMAsVIX = 41.7Short-term Trading Call: cautiously bullish Stock Market Commentary “The Federal Reserve on Thursday took additional actions to provide up to $2.3 trillion in loans to support … Read more

AGNC Investment Corp: Three Surprising Updates

Given my interest in the housing market and housing-related stocks, I have followed the culture of collapse in the mortgage REIT (real estate investment trust) sector with a mixture of horror, dread, astonishment…and buying interest. Some companies in this sector have already gone out of business thanks to aggressive margin calls during the worst part … Read more

A Broad Market Breakout Reawakens the Green Shoots (Above the 40) – April 6, 2020

AT40 = 7.9% of stocks are trading above their respective 40-day moving averages (DMAs) (28th oversold day)AT200 = 6.7% of stocks are trading above their respective 200DMAs (new low for the oversold period)VIX = 45.2Short-term Trading Call: cautiously bullish Stock Market Commentary Today’s dose of hope comes in the form of definitive breakouts. No sooner … Read more

Green Shoots Begin Breaking Through Key Stock Downtrends – Above the 40 (March 24, 2020)

AT40 = 2.5% of stocks are trading above their respective 40-day moving averages (DMAs) (20th oversold day)AT200 = 3.7% of stocks are trading above their respective 200DMAs (new low for the oversold period)VIX = 61.7Short-term Trading Call: bullish Stock Market Commentary The week did not start as I feared with a 5th circuit breaker shut-down … Read more

Green Shoots for A Grinding and Historic Oversold Period – Above the 40 (March 20, 2020)

AT40 = 2.0% of stocks are trading above their respective 40-day moving averages (DMAs) (18th oversold day)AT200 = 2.6% of stocks are trading above their respective 200DMAs (new low for the oversold period)VIX = 66.0Short-term Trading Call: bullish Stock Market Commentary The bear market grinds on. At the time of writing, U.S. stock market futures … Read more