ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Just over a month has elapsed since I concluded that S&P 500 was reaching a short-term bottom but would not challenge its 52-week highs (set in January) for “many months to come.” On Thursday, the S&P 500 printed a new 52-week closing high by one penny. On Friday, the index made a new intra-day high … Read more
Although the S&P 500 almost touched its high for the year on its eighth up day out of the last nine trading days, the VIX (the volatility index) increased almost 4%. So, as the S&P 500 scrapes at fresh 18-month highs, the VIX is bouncing from 21-month lows. The chart below shows the current action … Read more
It took a lot of patience, but Research In Motion Ltd. (RIMM) finally broke out yesterday above the $72 resistance level. The chart below summarizes the bullish technical set-up. *Chart created using TeleChart: RIMM fascinates because it is one of those stocks that attracts what I call “passionistas” – people with extremely strong and adamant … Read more
The stock market’s bounce from oversold conditions has been as impressive as almost all other such bounces over the past year. I noted in early February that several technical indicators were pointing to a buying opportunity. One of those indicators, the percentage of stocks trading above their 40-day moving averages (also known as “T2108“), is … Read more
Google (GOOG) has had a rough 2010. While the NASDAQ is up 1% for the year, GOOG is down 10%. Buyers have finally flocked to GOOG in the past week as the stock hit oversold levels, and the stock has perked up for the first time in 2010. (GOOG was one of several stocks I … Read more