ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
2011 has been a rough year for Google (GOOG) as the stock continues to underperform relative to the S&P 500. GOOG is down 14% year-to-date while the S&P 500 is up 6.5%. I was premature in mid-May speculating that GOOG had finally reached some kind of bottom in the wake of its bond-offering. However, a … Read more
On July 1, 2011, Brett Arends wrote in MarketWatch a piece lambasting groupthink and crowd psychology in “Dominique Strauss-Kahn and your money; Commentary: Wisdom of the crowd comes into question yet again.” The article was an intriguing way to relate the rush to judge DSK in mass media in the absence of complete information to … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. To learn more about it, see my T2108 Resource Page.) T2108 Status: 70% and overbought. VIX Status: 16. General (Short-term) Trading Call: Close more bullish trades (longs), initiate new bearish trades (shorts). Commentary The S&P 500 closed the week with a … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. To learn more about it, see my T2108 Resource Page.) T2108 Status: 60% and neutral. VIX Status: 17. General (Short-term) Trading Call: Hold. Sell a few more longs and start identifying potential shorts. Commentary The current 4-day rally exhibits the kind … Read more
The slogging has been a little tough since I recommended buying First Solar (FSLR) on the other side of an earnings disappointment. FSLR did disappoint and after the stock broke down from post-earnings consolidation, I insisted the stock remained a buy even as short interest reached new highs. After bouncing 11% so far this week, … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. To learn more about it, see my T2108 Resource Page.) T2108 Status: 47% and neutral. VIX Status: 17 (closed below last oversold period). General (Short-term) Trading Call: Hold. Commentary T2108 soared again, closing today at 47% and a high for June. … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. To learn more about it, see my T2108 Resource Page.) T2108 Status: 39% and neutral. VIX Status: 19. General (Short-term) Trading Call: Hold (or sell some positions to preserve some profit and/or maintain cash for buying into the next dip). Commentary … Read more
On June 20, famed money manager Doug Kass tweeted a stock market warning: “once again the strength in consumer non durables (pg pep cl clx k gis etc) are a market warning sign.” So what happens when these stocks start to break down along with so many others? Is their weakness suddenly a harbinger of … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. To learn more about it, see my T2108 Resource Page.) T2108 Status: 29% and neutral. VIX Status: 21. General (Short-term) Trading Call: Hold. Commentary When I finally decided to start generating posts dedicated to T2108, I thought I would produce a … Read more
Research In Motion (RIMM) has been locked in a steep downtrend since February and printed its post-recession highs in September, 2009, so it is hazardous to make any upside predictions for the stock (for example, “Judgment Day for Research In Motion Could Yield Upside Surprise“). However, I could not resist making the observation that RIMM … Read more