ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Goldman Sachs (GS) has been on a tear lately. Since breaking out on September 5th, the stock is up about 11%. The first three days of the breakout move featured strong volume, above the moving 90-day average. GS is now challenging a major resistance area formed by a head and shoulders type pattern from 2012’s … Read more
T2107, the percentage of stocks trading above their respective 200-day moving averages has been in decline since reaching a quick post-recession peak in late 2009. It is one sign that fewer and fewer strong stocks are supporting the overall stock market. So when the indicator takes a fresh plunge to the downside, I sit up … Read more
Every now and then I see a chart that undermines my expectation for an imminent pullback in the general market. This time, Goldman Sachs (GS) delivered the reluctant surprise. Today, the stock surged 5.2% to fresh 6-month highs. Source: FreeStockCharts.com This is what I had to say about GS in late January during a comprehensive … Read more
The current extended overbought period has produced many amazing chart patterns. In this chart review, I am highlighting some charts I find particularly interesting and compelling. There are impressive recoveries, stocks dancing with critical resistance, and emerging breakouts. Some charts are quite telling in that they completely contradict the presumed economic disaster from an imminent … 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: 47% VIX Status: 23 … Read more
In late October, I claimed that Goldman Sachs (GS) had finally found a bottom after two years of mostly declining prices. It has been all downhill for GS ever since. The chart below shows the signals I used to decide GS had finally printed a bottom. Note that on November 9, GS sliced cleanly and … Read more
Goldman Sachs (GS) is the company everyone loves to hate. This sentiment makes a potential bottom in the stock, potentially explosive. Since mid-September, buying volume in GS has significantly dominated selling volume. In the past 2 days, GS has gained 16%, producing a very strong breakout above the downtrend formed by a declining 50DMA. I … Read more
On May 15, 2006, I wrote a piece called “Evidence of A Tiring Bull.” I used T2107, the percentage of stocks trading above their 200-day moving averages (DMAs), to make the strong claim that the three-year old bull market was nearing an end. T2107 had been in decline for two years, and I projected the … Read more
Germany to scrap nuclear power by 2022 – Sky News Germany on Monday became the first major industrialised power to agree an end to nuclear power in the wake of the disaster in Japan, with a phase-out to be completed by 2022. Chancellor Angela Merkel said the decision, hammered out by her centre-right coalition overnight, … Read more
(This is an excerpt from an article I published on Seeking Alpha. Click here to read the entire piece.) It has been a while since I last looked at Deutsche Bank (DB). At that time, I was focused on a pairs trade strategy versus Goldman Sachs (GS). So when I noted last week that GS … Read more