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 published on Seeking Alpha. Click here to read the entire piece.) Research In Motion (RIMM) has been trapped in a steep decline since hitting 9-month highs in February. The downward momentum finally came to a halt after the stock retested 52-week lows on May 16th. {snip} *Chart … Read more
The dollar index gained 0.75% on Friday as another phase of fears of Greece sent folks out the euro and into U.S. dollars. The 50-day moving average (DMA) has held as near-perfect support but Friday’s move has the shape of a bounce looking for follow-through. *Charts created using TeleChart: Follow-through from here, like a new … Read more
(This is an excerpt from an article I published on Seeking Alpha. Click here to read the entire piece.) In my last piece on Research In Motion (RIMM), I described the details from the company’s conference call warning on this quarter’s earnings…RIMM barely paused to take in the scenery at the October lows. The stock … Read more
(This is an excerpt from an article I published on Seeking Alpha. Click here to read the entire piece.) Silver failed at its 50-day moving average (DMA) resistance in spectacular fashion. Silver dropped 9% and gave up almost its entire gain from the previous three-day relief rally. Source: stockcharts.com As I mentioned in my previous … Read more
This is a quick follow-up to my piece three days ago summarizing the pre-earnings technical outlook on Apple (“Apple Teeters On Critical Support Ahead of Earnings…and the Next Sprint Higher?“). I thought I would be writing this commentary AFTER earnings, but it seems Apple (AAPL) may have already started its next sprint to higher prices. … Read more
Apple (AAPL) investors have had it relatively easy since the late 2008/early 2009 lows. As long as they were not stopped out (or panicked out) of positions in the May, 2010 “flash crash”, patience has paid off. Every stumble in the stock has marked a mere pause in the persistent stair-wise step upward to ever … Read more
In late February, I lamented that TBT, the Pro Shares UltraShort 20+ Year Treasury ETF, was careening toward a retest of the 200-day moving average (DMA) that it would lose. After three more weeks, the anticipated retest finally occurred, and TBT survived. *Chart created using TeleChart: The retest of the 200DMA was a great reminder … Read more
A month ago, I took issue with a UBS downgrade of Amazon (AMZN) and tried to demonstrate how this analyst action and commentary could be twisted into a blueprint for a buying opportunity. At the time, I noted that a test of the November lows on a 13% drop could produce the 8% upside potential … Read more
A week ago I used F5 Networks (FFIV) as a model to suggest that Finisar (FNSR) and JDS Uniphase (JDSU) showed some promise to bounce from critical support levels. I drew out the specific price points at which buys made sense and included some stops. The promise quickly led to a letdown as both FNSR … Read more
Tuesday’s expected gap down and steady buyback created a LOT of amazing charts. Many stocks I have reviewed bounced with picture-perfect accuracy off key support levels like 50DMAs and 200DMAs. The chart of the dollar index also caught my attention (as it so often does). For the past two days, the U.S. dollar has clung … Read more