ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
A week ago, I reviewed the technicals on the Australian dollar versus various currencies. If you blinked, you missed the picture-perfect setup against the Japanese yen (AUD/JPY). I pointed out that a retest of the 200-day moving average would provide a good entry point. AUD/JPY did not quite touch this point of important support, but … Read more
I have written several pieces recently on the housing industry, starting with “Time to Buy the Dips in Homebuilders” (click here for an archive of my articles on housing). The main theme has emphasized that now is the time to start investing in a bottom in housing that I anticipate happening next year. I have … Read more
The current extended overbought period has produced many amazing chart patterns. In this chart review, I am highlighting some charts I find particularly interesting and compelling. There are impressive recoveries, stocks dancing with critical resistance, and emerging breakouts. Some charts are quite telling in that they completely contradict the presumed economic disaster from an imminent … Read more
Throughout Amazon.com’s near 3-month downtrend, I have pointed out several bearish set-ups and confirmations on the stock in blog posts and tweets. On Tuesday, Amazon.com (AMZN) started the new year by finally breaking away from the downtrend. Today, AMZN lacked follow-through and put the breakout on tenuous ground. I remain bearish on AMZN but prefer … Read more
The U.S. dollar continues to creep slowly but surely upward as the euro steadily sinks week after week. After the dollar survived a plunge below the 200DMA that I thought marked the decisive end of its previous relief rally, the currency has faithfully followed its 50-day moving average (DMA) to higher ground. On Wednesday, the … Read more
Surprise! The dollar’s relief rally is not quite over as I had suspected last Thursday (October 27) when the dollar plunged with resounding force below its 200-day moving average (DMA). On Monday, the dollar index surged back above its 200DMA as all of last week’s booming enthusiasm over a deal on Greek sovereign dealt rapidly … Read more
Goldman Sachs (GS) is the company everyone loves to hate. This sentiment makes a potential bottom in the stock, potentially explosive. Since mid-September, buying volume in GS has significantly dominated selling volume. In the past 2 days, GS has gained 16%, producing a very strong breakout above the downtrend formed by a declining 50DMA. I … Read more
The saga of Best Buy’s bottom has now developed in a strange fashion. For two months now, I have maintained a laser focus on the buying opportunity in Best Buy (BBY) stock based on some stabilization around the 2009 lows. In the last post, I pointed out that sellers may have finally been washed out … Read more
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