ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The start of 2014’s first full week of trading did not disappoint. There were fireworks to be found in all sorts of individual stocks. I am only covering three in this chart review: Twitter (TWTR), Apple (AAPL), and LinkedIn (LNKD). TWTR gapped down on Monday (January 6, 2014) forming a more definitive formation of the … Read more
On November 6th, I identified a budding downtrend for Tesla (TSLA). The remaining portion of the downtrend only lasted another two weeks before a consolidation phase took over. I switched my bias from bearish to bullish at that point. A tremendous breakout on December 3rd confirmed that the primary downtrend had ended, and the 50-day … Read more
I last reviewed International Business Machines (IBM) on July 1st of this year. At the time, the stock printed a near picture-perfect bottoming pattern (see chart below) that over-extended the stock. The bottom play lasted about two weeks before the stock’s 2013 downtrend regained control. The stock then flipped 180 degrees as it made a … Read more
In previous Apple chart reviews and updates, I have noted the apparent influence of the open interest put/call ratio on the overall bull/bear tone of Apple (AAPL). When the stock last bottomed – between September 16th and 17th – the open interest put/call ratio dropped to a level last seen since, you guessed it, AAPL’s … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on September 26, 2013. Click here to read the entire piece.) It has been a week since the Federal Reserve surprised the globe when it backed off from its earlier tough talk about bond tapering. The U.S. dollar index (UUP) plunged in … Read more
This chart review covers the following stocks Apple (AAPL), Amazon.com (AMZN), Best Buy (BBY), Skull Candy (SKUL), Priceline.com (PCLN), Hewlett-Packard (HPQ), and Caterpillar (CAT). Apple (AAPL) In retrospect, last Monday’s plunge now looks like some kind of “manipulation.” The stock plunged 3.2% on no immediate news so the selling looked like follow-through to the previous … Read more
On Monday, I was QUICK to declare “a very bearish breakdown for Apple.” Just two days later, the stock has recovered all of Monday’s huge loss and sits on the cusp of a very encouraging recovery or at the precipice of a renewed sell-off. The stock is neatly perched between its 50 and 200-day moving … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are highly gap down to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other … Read more
For over two months, I have gained some valuable experience and lessons putting the formalized Apple Trading Model (ATM) into practice. I have experienced two main challenges: 1) balancing the sometimes conflicting messages of the ATM when using different amounts of historical data, and 2) plain old execution. For challenge #1, I have concluded that … Read more