ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Like many strong momentum high-tech stocks, Baidu Incorporated (BIDU) has had an incredible run from its 2009 lows. In less than three years, the stock has increased over 16x from around $10 to over $160. Last week, BIDU traded below its 200-day moving average (DMA) for the first time since April, 2009. On Thursday, BIDU … Read more
This chart review pairs an ugly chart with a blooming one. Japan’s Nikkei stock market index made very little additional progress after the sharp and rapid bounce from the March lows marked a crescendo of panic over the Fukushima Daiichi nuclear catastrophe. On five separate days, the Nikkei survived tests of the closing lows from … Read more
(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) It took a whole month before the dollar finally launched into the relief rally I thought would soon follow the S&P’s downgrade of U.S. government debt. Even after the Swiss franc’s rein as a “safety” … Read more
The trading playbook for Research In Motion’s share buyback is finally unfolding. Last week, Research In Motion (RIMM) broke out, nudging itself over the rapidly declining 50-day moving average (DMA). Today, RIMM finally closed above $30 and punched into June’s post-earnings gap down. *Chart created using TeleChart The September 30/35 call spread I recommended last … Read more
Finally, Research In Motion (RIMM) is performing better than the general market. For the last two weeks, RIMM has trended upward relative to the QQQ (PowerShares QQQTrust for big-cap technology stocks). This has not happened all year. More importantly, the stock has finally jumped above the 50-day moving average (DMA). Granted, such a breakout has … Read more