ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
My last pairs trade going long Redfin (RDFN) calls versus long Zillow Group (Z) (ZG) put options did not work out as I over-extended my stay on RDFN. A fresh opportunity for a pairs trade has arrived with RDFN neatly testing key support after reversing most of its post-earnings gains and with Zillow Group in … Read more
AT40 = 37.3% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 46.5% of stocks are trading above their respective 200DMAs VIX = 18.0Short-term Trading Call: neutral (caveats below!) Stock Market Commentary The S&P 500 (SPY) ended the week almost where it started. In between the bookends, the market gyrated wildly … Read more
AT40 = 30.4% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 44.9% of stocks are trading above their respective 200DMAs VIX = 20.2 (the day before it closed at 24.6 and a 7-month high)Short-term Trading Call: neutral (caveats below!) Stock Market Commentary Almost Oversold I underestimated the market’s readiness to … Read more
AT40 = 41.5% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 49.8% of stocks are trading above their respective 200DMAs VIX = 17.6 (high of 20.1)Short-term Trading Call: neutral Stock Market Commentary A Pause of Recognition I am writing about financial markets at a time when there is renewed pain … Read more
The Extreme: Best Buy Regular readers know that my favorite trades come on the heels of extremes in financial conditions. After President Trump announced a 10% tariff on $300B of Chinese imports, I saw a lot of extremes that made me sit up and take notice. One of the biggest extremes occurred in the shares … Read more