ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
I posted a note before noon on Thursday outlining the latest technicals that seemed to point toward a lower stock market. Almost as soon as I sent it, I wished I had waited…mainly because T2108, the percentage of stocks trading above their 40-day moving averages, started declining at an even faster rate. By the close … Read more
Earnings excitement is one casualty of the current selling in the market. Several big cap stocks and multinational companies generated a lot of hype and attention from their earnings results this quarter. A number of those gains have been erased and then some. Four stocks have attracted my particular interest: Apple (APPL) – A market … Read more
The financial markets finally got a bailout package for Greece – and they vigorously sold off on the news. (Yes, there are plenty of other negatives out there as well…all ignored until now). The good news is that the S&P 500 remains higher than it was back in January when the stock market last cared … Read more
MEMC Electronic Materials (WFR) manufactures silicon wafer solutions for the semiconductor and solar industries. WFR fell 19% on Friday in response to earnings despite the company’s reassurances that it is on track to meet full-year guidance targets (click here for the transcript from Seeking Alpha): “In the first quarter, revenue was ahead of our internal … Read more
Earlier this week, I suggested setting up a pairs trade between Goldman Sachs (GS) and Deutsche Bank Ag (DB) to take advantage of an apparent growing divergence in performance between the two financial giants. My main recommendation rested on a put spread for GS and a call spread for DB. After thinking about the structure … Read more