ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Deutsche Bank (DB) In early October, I pointed out the extreme in bearish sentiment on Deutsche Bank (DB) and the related overcrowding in bearish bets. After DB surged 14% off its latest all-time low, I decided to hold onto my call options which were a play on a bottom. So far, so good. DB printed … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on October 8, 2016. Click here to read the entire piece.) On October 5th, I noted how SPDR Gold Shares (GLD) and iShares Silver Trust (SLV) both completed post-Brexit roundtrips as rumors of a eurozone tapering of QE triggered a fresh wave … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are … Read more
A week ago, I discussed the setup for the next pairs trade going short Solar City (SCTY) and long Tesla Motors (TSLA). The technicals of SCTY and TSLA suggested a (short-term) bottom in the making. The latest charts suggest a confirmation of those bottoms, especially for Solar City. The follow-through confirmation came 2 days after … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are … Read more