ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
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
On Friday, The iPath Bloomberg Cocoa SubTR ETN (NIB) soared 3.0% to a 14-month high. It was a breakout the validated months and months of patience betting that in a market with strong demand, extremely low cocoa prices would create the conditions for higher prices in the future. While NIB has persistently rallied since the … Read more
AT40 = 27.1% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 44.4% of stocks are trading above their respective 200DMAs VIX = 19.6 Short-term Trading Call: neutral (caveats below!) Commentary President Trump has been talking about taking unilateral trade actions since he was campaigning in 2016. The rhetoric heated up … Read more
The last Housing Market Review covered data reported in January, 2018 for December, 2017. At the time, I described the ominous breakdown of the iShares U.S. Home Construction ETF (ITB), but I was not yet ready to connect the dots on the bearish implications. I am now. ITB has continued its breakdown by first severely … Read more