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.) Juniper Networks (JNPR) has surged 24% since I wrote about the stock’s plunge to 2 1/2 year lows. At that time, I claimed it was time to trigger my idea to do a pairs trade … Read more
(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) Two weeks ago, I described a potential pairs trade between Juniper Networks (JNPR) and Cisco Systems (CSCO) based on the ratio of their prices and relative valuations (see “Pairs Trade: Cisco Systems Is Catching Up … Read more
(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) Cisco Systems (CSCO) has steadily declined since reaching a peak in April, 2010. For much of this time, analysts and commentators seemed to focus on company-specific problems as the blame. It seemed competitor Juniper Networks … 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
In the wake of the SEC’s charges of fraud against Goldman Sachs (GS), I recommended trying a pairs trade going short GS and long Deutsche Bank (DB). I was betting that either the SEC charges would blow over and DB would rebound sharply, or the gravity of the charges would intensify and GS would sell-off … Read more