ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Three and a half years ago, I concluded that options for Google (GOOG) should be sold, not bought, ahead of earnings. This advice seemed to generally apply ever since as GOOG tended to move just enough after earnings to devalue near-the-money calls AND puts. Friday’s 11% post-earnings pop was a rare, and impressive, exception to … Read more
With tongue reaching for the cheek last week, I declared the market both extremely undervalued and very overvalued, guessing that “as earnings season grinds on, I suspect the near-predictable pattern of post-earnings fades will finally wear thin, giving way to more bullish behavior.” I did not expect the turn to happen so clearly and dramatically … Read more
Big-cap tech stocks have been some of the poorest performers during the recent sell-off in the stock market. Google (GOOG) stands out as one of the worst of the bunch. All technical indicators are pointing to even lower prices before some kind of bottom gets established. I am fond of trading GOOG between earnings reports. … Read more
Google (GOOG) has had a rough 2010. While the NASDAQ is up 1% for the year, GOOG is down 10%. Buyers have finally flocked to GOOG in the past week as the stock hit oversold levels, and the stock has perked up for the first time in 2010. (GOOG was one of several stocks I … Read more
In my last piece on Google (GOOG), I neglected to post an update to my chart on the company’s revenue metrics using the 2009 fourth quarter earnings report. The chart below shows that revenue per employee has now returned to the highs at the beginning of GOOG’s existence as a public company. Assuming that net … Read more