ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
It is hard to believe that just six weeks ago I proposed a pairs trade of gold versus bonds with the SPDR Gold Shares (GLD) toying with resistance at its 50-day moving average (DMA) and the iShares 20+ Year Treasury Bond (TLT) doing the same. Now, GLD has already hit the next line of resistance … Read more
AT40 Status: 65.6% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 Status: 70.2% of stocks are trading above their respective 200DMAs VIX Status: 11.7 (volatility index) Short-term Trading Call: neutral Commentary The struggle for the overbought threshold continues. AT40 (T2108), the percentage of stocks trading above their respective 40-day moving averages … Read more
Perhaps the shift was not large enough. Perhaps it was the magnetism of the 50-day moving average (DMA). After the Federal Reserve released the minutes from its last meeting on monetary policy, the U.S. dollar index (DXY0) promptly weakened. The dollar closed the day marginally lower after trading for a small gain in the morning. … Read more
So it was true after all. Restaurant Brands (QSR) was indeed drooling over the secret recipes of Popeyes Louisiana Kitchen (PLKI). Today, PLKI soared 19.1% to $78.73/share and a $1.6B market cap, just short of the $79 ($1.8B market cap) that QSR promised to pay for acquiring PLKI. When I discussed the merits of a … Read more
AT40 Status: 64.5% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 Status: 70.0% of stocks are trading above their respective 200DMAs VIX Status: 11.5 (volatility index) Short-term Trading Call: neutral Commentary The S&P 500 (SPY) stumbled out the gate and struggled in slightly negative territory for much of the day. A … Read more