ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
After failing to to topple over the 1.56 level over the past week, the British pound finally made a major breakthrough today against the U.S. dollar (FXB). This surge takes GBP/USD takes the currency pair right into the teeth of resistance from declining 50 and 200-day moving averages. Source: FreeStockCharts.com I think this resistance will … Read more
On May 18th, I wrote that Amazon.com (AMZN) had triggered a post-earnings short by closing below the low of trading in the immediate aftermath of the last earnings report (at $220). However, I did not recommend pulling the trigger because the market was oversold at the time. Surprisingly, AMZN did not benefit from the market’s … Read more
When Shutterfly (SFLY) reported earnings on April 30th, the company provided guidance for a larger Q2 loss than analyst expectations. Despite this disappointment, the stock opened the next day with an amazing 9% gain. Unfortunately, trading has been all downhill from there. SFLY closed the day losing all its gains, and it was even trading … Read more
After reporting earnings on the evening of April 24, Baidu (BIDU) dropped 10% or so in after-hours trading. By the time time trading opened the next day that loss was cut to just 4.5%. At the highs of that day, BIDU actually managed to recover all its post-earnings losses. I typically characterize such a recovery … Read more
Two weeks ago, Yelp.com (YELP) confirmed its blow-off top with a break of critical support (see “Chart Review: Yelp.com Confirms Blow-Off Top With A Break Of Support“). That support immediately turned into resistance. After dropping close to post-IPO lows, YELP bounced, only to stop cold at resistance. After reporting earnings, YELP dropped 12% directly from … Read more