ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
On January 28, QUALCOMM (QCOM) disappointed the market by guiding earnings and revenue expectations down for its fiscal second quarter (pro forma EPS of $0.49-0.53 vs. $0.57 consensus and $2.4-2.6B in revenue vs. $2.75B consensus). The stock closed down 14% on the day on over 6x the 3-month average volume. This surge of selling represented … Read more
Nowhere is a destination for the average solar stock these days. For example, TAN, the Claymore/MAC Global Solar Energy ETF, has been stuck in a trading range since May of last year. 16 months ago, TAN was selling at the current price of $8.33/share. This dramatic under-performance (for example, relative to the S&P 500) will … Read more
Financial stocks as a group topped in October. The recent surge in selling volume on XLF, the Financial Select Sector SPDR, has dragged prices to a critical support level. The chart below shows the XLF is teetering on the edge of a 6-month trading range. XLF is also testing its 200-day moving average (DMA) (this … Read more
Last week, I suggested that T2108 was at such low levels that the next spike in the VIX would represent a major buying opportunity. Sure enough, the VIX printed only its second higher high of the entire rally off the March lows and buyers rushed immediately into the market (put sellers probably also rushed in … Read more
Toyota’s stock first broke down in late November when it plunged below the 200-day moving average (DMA) for the first time since 2007. Unlike 2007, this technical break led to a sharp rally and not a sustained sell-off. (At the time, I suggested a counter-trend rally was likely, especially if the yen weakened; but I … Read more