ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
This is a quick post demonstrating two stocks recovering from post-earnings losses, that is, filling post-earnings gaps down. Netflix (NFLX) surged 7% on Friday on strong buying volume, smashing through resistance at the 200-day moving average (DMA), and filling a gap created from post-earnings disappointment. Not wishing to press my luck further, I sold my … Read more
As expected, First Solar’s earnings last week did not print any big surprises. Read a brief summary provided by earth2tech or flip through the earnings presentation for more details. The mixed results provided no clear trading catalyst, putting key technical levels in play that I was looking to trade. Support at the 200-day moving average … Read more
The rally in the British Pound may finally be on its last legs. I am sure the Bank of England hopes so as it meets to decide interest rates tomorrow. I wrote just last week about the potential for the pound to break out versus the U.S. dollar, and it has done so quite convincingly. … Read more
The U.S. dollar index touched its 200-day moving average with the kind of precision only a technician can love. *Chart created using TeleChart: I keep waiting for (and betting on) the dollar to get a nice relief bounce against the yen, but the dollar’s near straight-line descent has been the main story. While I wait … Read more
For many of us, investing over the last 10 years has been much more difficult and a lot less fun than it was in the 90s. In the 90s, it was easy to accept the religion of “buy and hold”, keep the faith that assets are pre-ordained to increase in value, and drown oneself in … Read more
On Tuesday, Research In Motion’s (RIMM’s) stock plunged over 4% on notable volume. It appeared that a 4-month downtrend was ready to resume. That evening, RIMM announced a mysterious event, presumably with AT&T, for the following Tuesday. Always quick to buy a rumor, the market responded to the hype by sending RIMM to a rapid … Read more
Earlier, I noted that Intel’s stock looked ominous given so many stocks were making bullish post-earnings reversals. On Friday, Intel (INTC) finally gave up the rest of its impressive post-earnings gains. On a day in which the market staged a relatively impressive comeback from initial selling (the NASDAQ closed marginally UP), INTC closed on its … Read more
First Solar (FSLR) reports earnings this evening. Unlike the last two rounds, I have no strong feelings about the potential upward or downward moves this time around. I went neutral on FSLR after closing out positions on the great post-earnings pop in April, and I have not done much else since then with the stock … Read more
July will deliver an up month for Goldman Sachs (GS) for the first time since March and only the third time since it peaked nine months ago. GS is up 12% for the month of July, handily beating the 7% gain for the S&P 500 and and the 6% gain for XLF, the SPDRs Select … Read more
The British pound’s bounce from May’s 14-month lows versus the U.S. dollar has surpassed all my expectations. The currency has stumbled at key resistance points as expected, but the trend upward has been persistent and undeniable. The pound has followed a steep channel straight up. The pound is now sitting right at its 200-day moving … Read more