ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
“KB Home shares jump on third quarter earnings” – such is the kind of quick trigger post earnings headline that consistently fails for home builders. KB Home (KBH) opened higher by 5.7% but was all downhill from there. At the close, KBH lost 3.1% on the day in a major reversal. This close was a … Read more
“Haters gonna hate.” That phrase was a great way for CNBC’s Jim Cramer to begin his monologue introducing his interview with Toll Brothers CEO Douglas C. Yearley. In 2018, investors have exhibited plenty of loathing for the stocks of home builders despite an on-going string of strong earnings results and the backdrop of a strong … Read more
I saw a flicker of hope for home builders in the May Housing Market Review. Traders decided to snuff that flicker out very quickly afterward. When I wrote June’s housing market review and described a “struggling flicker,” the iShares US Home Construction ETF (ITB) was once again bouncing off the bottom of 2018’s trading range. … Read more
Toll Brothers (TOL) is more than halfway through reversing a surprising post-earnings gap up a week and a half ago. The 13.8% post-earnings gain surprised me because the message from TOL was little different than its messages in the past two earnings reports that have coincided with an extended sell-off in the stock. Source: FreeStockCharts.com … Read more
I saw a flicker of hope for home builders in the last Housing Market Review. Traders decided to snuff that flicker out very quickly afterward. Breakouts transformed into new tops and now the struggling flicker comes from home builder stocks holding support. The short-term path ahead looks like chop at best, especially with the latest … Read more