ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Earnings announcements are supposed to reveal the fundamental strength (or weakness) in a company. The reaction to those earnings should indicate the underlying fundamentals of a company. Yet, there is no time like earnings where the contrast between the true fundamentals of a company and market sentiment can clash in the most dramatic fashion. Case … Read more
“This is the hedge-fund equivalent of Stalingrad. Someone is going to lose big. And the victor will be so bloodied that the word victory will sound hollow… For a short-seller who is as risk-averse as me watching this is pure hedge-fund porn.” From “Bill Ackman enters the city of Stalingrad,” John Hempton of Bronte Capital, … 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 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 … 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 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 … Read more
For the fist time in about a month, Apple (AAPL) is challenging its short-term downtrend, currently marked by the declining 50-day moving average (DMA). Over the past two trading days, AAPL has surged 7.7%. The stock had gained as much as 8.9% at today’s high. This tremendous surge maintains AAPL’s tendency to begin the week … 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 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 … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on December 16, 2012. Click here to read the entire piece.) Almost two weeks ago, I noted that as long as the Australian dollar (FXA) maintained its stubborn strength, it made sense to play the currency long versus the weakening Japanese yen … 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 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 … Read more
Earnings season is creating its usual spectacle of fascinating charts. Here is a sample of the ones catching my eye right now: Breakdowns Cisco Systems (CSCO) On August 16th, CSCO jumped 9.6% in response to a positive earnings report. CSCO has yet to make any progress since then. On Wednesday, the stock confirmed its breakdown … Read more
While the general market churns, individual stocks continue to tell unique stories with good trading opportunities. In this chart review, I look at recent developments in Apple (AAPL), Google (GOOG), Priceline.com (PCLN), Siemens (SI), and Facebook (FB). Apple (AAPL) AAPL’s technicals continue worsening. On Thursday, October 11, AAPL printed a bearish engulfing pattern that essentially … Read more