ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) I had to blink twice and twice again. After checking on Intel’s stock chart for the first time in a very long time, I was quite surprised by what I found. Not only has Intel … 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
I was clearly far too early in restarting a pairs trade short Microsoft (MSFT) and long Intel (INTC). Over the past two months, the performance of MSFT has steadily improved, while Intel’s performance has steadily worsened. The MSFT/INTC ratio is now at 10 month highs. Source: stockcharts.com Typically, I would look at this divergence and … Read more
Intel (INTC) and Microsoft (MSFT) have been tech laggards for some time now. However, over the past week, both stocks finally breached the all-important 200-day moving average (DMA) line of resistance (charts at the end of this piece). While MSFT is struggling to add to its small post-earnings gains, INTC has completely reversed the post-earnings … Read more
The post-earnings selling in Intel (INTC) has become uncanny in its consistency. Four out of the last six earnings reports have resulted in selling even as INTC’s headline earnings news has generally been OK to good. Three of the four bouts of selling followed immediately after INTC opened its first post-earnings trading day higher. This … Read more