ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Toys R Us refuses to die. The hedge funds that own the debt of the bankrupt toy retailer decided to cancel an auction of assets and instead plan to revive the brand and even open new retail outlets. The prospects of another Toys R Us revival could become symbolic: the timing coincided with what looks … Read more
AT40 = 41.2% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 51.6% of stocks are trading above their respective 200DMAs VIX = 12.1 Short-term Trading Call: neutral Commentary The stock market is stretched yet again based on AT40 (T2108), the percentage of stocks trading above their respective 40-day moving averages … Read more
On Friday evening, headlines screamed that Tesla (TSLA) CEO Elon Musk had reportedly made a surprisingly bold and extremely risky decision to fight charges of fraud by the Securities Exchange Commission (SEC). On Saturday, it looked like reason and rationality prevailed with an official announcement of a settlement deal issuing a slap on the wrist … Read more
The S&P 500 (SPY) printed its best quarter since the fourth quarter of 2013. While the index gained 7.2% for the third quarter of 2018, home builders went in the exact opposite direction. The iShares US Home Construction ETF (ITB) tumbled 7.4% for Q3 and is now down a whopping 20.9% year-to-date. The selling accelerated … Read more
General Electric (GE) dropped 4.0% for a fourth straight day of high volume selling. At $11.27/share GE sits at a stomach-churning 9-year low. Source: TradingView GE’s early June expulsion from the Dow Jones Industrial Index seemed like such natural ignition for a bottom that even CNBC’s Jim Cramer got off the fence to declare the … Read more