ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Speculative stocks typically get hit the hardest during corrections in the stock market, and solar stocks definitely qualify for a beating. In the past 4 days of selling, TAN, the Claymore/MAC Global Solar Energy Index, is already down 10%. Solar stocks have been big laggards this year as TAN is now back to even on … Read more
The British pound has taken some sharp twists and turns since first hitting 4-month lows against the U.S. dollar on September 28. I have been steadfast in my bearishness against the pound since mid-September, but I have found it necessary to dance in and out of positions given the persistent decline in the dollar against … Read more
Fears rise of prolonged weakness (UK) Fears that the UK could be facing a prolonged period of economic weakness have risen after a survey of manufacturers showed few companies believe a recovery has started, while many continue to be frustrated by the reluctance of the banks to release credit. (tags: United Kingdom,economy,recession,recovery) A Change Has … Read more
I have not reviewed T2108, the percentage of stocks trading above their 40-day moving average (DMA), or its close cousin T2107, the percentage of stocks trading above their 200-day moving average, since late April (click here for the review). For most of the intervening weeks and months, the message has remained the same: over-bought and … Read more
Thursday’s stock market sell-off could finally be the start of the sharp Fall correction I have speculated about in various forms for months now. The extent of the technical damage and the heavy distribution of stock certainly seem to have put a ceiling on stock prices for now. Solar stocks were heavily hit as speculative … Read more
Schaeffer’s Investment Research is reporting today that the Macau IPO for Wynn Resorts, Limited (WYNN) has been meet with heavy put buying the past two days. October 65 puts were popular yesterday and the bearish trading has extended to the 60 strike today. The option strangle trade I outlined last week on WYNN uses the … Read more