ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
(This is an excerpt from an article I originally published on Seeking Alpha on July 29, 2012. Click here to read the entire piece.) I started with a bullish strategy to trade the British pound against the U.S. dollar (FXB) after fiscal and monetary authorities rallied to airlift more liquidity into the economy. It worked … Read more
On July 23, Starbucks (SBUX) tested its 200-day moving average (DMA) for the first time since last October. This support held as the general stock market rallied into the close. This level also happened to coincide with SBUX’s breakout in March as SBUX moved on to fresh all-time highs. Source: FreeStockCharts.com If SBUX fails to … Read more
In about one month, Yelp.com (YELP) doubled from its all-time lows to a retest of its all-time highest close. Along the way, Apple (AAPL) made the following announcement on June 11th: “…local search includes information for over 100 million businesses with info cards that offer Yelp ratings, reviews, available deals and photos.” YELP did not … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on July 1, 2012. Click here to read the entire piece.) Thanks largely to the surging euro, the U.S. dollar index (UUP) took one of its nastiest one-day tumbles since last October, falling 1.3%. I believe this drop all but confirms staunch … Read more
I earlier argued that the Japanese yen held a critical piece of the puzzle to determining what’s next for risk attitudes (see “The Japanese Yen And Volatility Sit At The Cusp Of Renewed Risk Aversion”). On Monday, the yen seemed to confirm that risk aversion is indeed returning and likely to stay with us for … Read more
Cyclical stocks continue to worry me even as the S&P 500 treads water. Charts across a wide swath of related stocks show inabilities to break critical resistance and in some cases, are outright breaking down. Here are several representative charts along with brief commentary. The Materials Select Sector SPDR (XLB) and the Industrial Select Sector … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on June 19, 2012. Click here to read the entire piece.) In “British Pound Surges Into Resistance – Buy Dips As Government and Bank of England Try To Ease Credit Crunch” on June 15th I argued that it is time to buy … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. 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 posted on twitter using the #120trade hashtag) T2108 Status: 52% VIX Status: 18.3 … Read more
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