ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Last week, I updated the data on the Apple (AAPL) pre-earnings trade in a piece called “The Apple Pre-Earnings Trade: October, 2015 Edition – An Important Juncture.” I concluded that the main trade for AAPL going into earnings October 27, 2015 is to fade the 7-day average daily price change. Not including today (the 27th), … Read more
At the timing of writing, Apple (AAPL) is up 0.6% for the year, essentially flat. When I last wrote about the Apple pre-earnings trade back in January, I looked back at the December 1, 2014 “flash dip” in AAPL’s stock as a lingering harbinger of more selling to come. As it turned out, AAPL sold … Read more
The Shanghai Composite Index (SSEC) plunged 8.5% to start trading for the week. The ripple effects were wide and far-reaching even as arguments continue floating that the collapse in China’s stock market matters little outside of China and does not truly reflect on economic conditions in the country. Apple (AAPL) CEO Tim Cook summed up … Read more
Apple (AAPL) was stuck in a trading range for the past five months. For much of that trading range, AAPL neatly pivoted around its 50-day moving average (DMA). I noticed these combined behaviors starting around early May. I have written about them and traded them. Today, July 9th, AAPL finally dropped out of the trading … 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
At the time of writing Apple (AAPL) is down 1.6% in sympathy with a poor reaction to Microsoft’s (MSFT) that included warnings about the impact of the strong U.S. dollar (UUP). The drop has formed a bearish “abandoned baby top” kind of technical pattern just as the stock has dropped below the 50-day moving average … 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
(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
It is earnings time for Apple (AAPL). Expectations are undoubtedly high after April’s huge post-earnings surge – the 8.2% one-day gain is, since 2007, second only to the 8.9% gain in April, 2012. The subsequent run-up certainly has me thinking AAPL has confirmed my expectations for eventual all-time highs. It is now time to temper … Read more
Just ahead of the start of the Apple Worldwide Developers Conference (WWDC), I wrote that I was preparing for a change in Apple’s trading patterns that would impact the Apple Trading Model (ATM). My main interest was in the coming 7-to-1 stock split and the potential for retail traders leaving options alone to trade directly … Read more