ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
After summarizing Fastenal’s dour commentary on non-residential construction, I pointed out that a retest of former resistance would make an attractive entry point on the stock. As planned, I initiated a (swing) trade on Fastenal (FAST) as it probed the 50DMA support over the past several days. Today, FAST bounced off the 50-day moving average … Read more
At the end of December, I suggested that the post-earnings trading in U.S. Steel (X) and Nucor (NUE) would be explosive based upon stealth rallies from the November lows that occurred despite a strong accumulation in puts and shorts on those stocks. On Tuesday, both steel companies delivered disappointing earnings that included cautions regarding continued … Read more
I last wrote about the Brazil Index Fund ETF (EWZ) at the end of the sharp correction in October. At that time, the big headline was that EWZ had lost all its gains from the Olympics-driven rally, and I was anticipating buying EWZ at the end of a total correction of 20% from the closing … Read more
On Friday, the S&P 500 broke down below the 50-day moving average (DMA) on high volume and volatility spiked over 50% during two days of heavy selling (charts at the end of this post). The S&P 500 has been here before. Since the March lows, this is the… Fourth break below the 50DMA: previous breaks … Read more
Google (GOOG) fourth quarter earnings last night were largely as expected: “Google reported revenues of $6.67 billion for the quarter ended December 31, 2009, an increase of 17% compared to the fourth quarter of 2008…GAAP EPS in the fourth quarter of 2009 was $6.13…compared to $1.21 in the fourth quarter of 2008…Non-GAAP EPS in the … Read more
At this point, everyone should be used to looking at charts of stocks and indices that look like they are topping out, many in climactic fashion (click here for a review of Caterpillar; click here for a review of Intel). Add healthcare stocks to the growing list. Specifically, the Health Care Select Sector SPDR ETF, … Read more
I did not think I would consider (this soon) whether the dollar’s short-term downtrend is ending. I thought this month’s unemployment report put an end to the dollar’s relief rally, but the dollar has surged in the past 3 days to recover all its losses since the most recent peak in mid-December. Even the Australian … Read more
The market delivered another tepid response to another stellar earnings report from Intel (INTC). After October’s earnings report, I argued that INTC was hitting peak performance. Trading following that report seemed to support my expectation. Trading after Thursday night’s earnings looks like an exclamation point on what is a potential climactic top in INTC. Prior … Read more
Last week produced some ominous chart patterns in important individual stocks. I already covered Google (GOOG) and its rare retest of support at the 50-day moving average (DMA). While I still think GOOG will succeed in its retest in the near-term, I am not so sanguine about other ominous charts. Caterpillar (CAT) survived potential climactic … Read more
Google (GOOG) is now down 5% for the year, under-performing the NASDAQ which is essentially flat for 2010. The sudden surge in volume in GOOG suggests that a large group of traders and investors are selling on the news of the Nexus One release. This volume represents the most active trading in GOOG since its … Read more