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.) Before Apple (AAPL) reported earnings, I reviewed the tea leaves in the chart guessing that the stock was getting ready to make its next sprint higher despite what looked like increasing distribution in the stock. … 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
Adobe Systems, Inc. (ADBE) surged as high as 17% today after news leaked about a private meeting between ADBE and Microsoft (MSFT) company executives. The most salient rumor surrounding this meeting is that MSFT is considering acquiring ADBE in addition to other strategic options for going after Apple’s (AAPL) dominance in the mobile device market. … Read more
Ever since my friend “Mr. Bull” gave me a ribbing over writing a bearish piece on Intel (INTC) the day before a strong one-day rally, we have used Intel as a metaphor for whether the bulls or the bears are in control of the market. For the five weeks since then, INTC has gone nearly … Read more