ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Housing Market Intro/Summary After writing the last Housing Market Review, I was convinced a triple top had appeared in the iShares US Home Construction ETF (ITB). The May sell-off in the stock market pushed ITB into a breakdown below its 50-day moving average (DMA). Immediately after that post, ITB rebounded right through its 50DMA and … Read more
AT40 = 53.7% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 50.3% of stocks are trading above their respective 200DMAsVIX = 15.4Short-term Trading Call: neutral Stock Market Commentary The stock market is officially in bizarro world. The stock market is breathlessly rallying in anticipation of rate cuts that will come … Read more
Housing Market Intro/Summary In the January Housing Market Review, I described a pause in the bad housing data long enough to allow the stocks of home builders to rally sharply with the stock market. The iShares US Home Construction ETF (ITB) was testing resistance at its 200-day moving average (DMA); that moment turned out to … Read more
AT40 = 52.3% of stocks are trading above their respective 40-day moving averages (DMAs) (2+ month low)AT200 = 42.6% of stocks are trading above their respective 200DMAsVIX = 13.7 Short-term Trading Call: bearish (caveats below!) Stock Market Commentary The previous Friday’s trading action provided delayed confirmation of my short-term bearish trading call. Last week delivered … Read more
On March 25th, CNBC’s Fast Money discussed very active options trading in the iShares Dow Jones US Home Construction Index (ITB). Call option volume was triple put option volume. Of note, some trader purchased 5000 April 12 $35 weekly calls with ITB trading at $34.60 and just under its 200-day moving average (DMA). That trader … Read more