ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
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
The S&P 500 is now just 5% away from its 52-week highs has remained aloft at overbought levels for 23 straight trading days. T2108, the percentage of stocks trading above their respective 40-day moving averages (DMAs) is trading at 86% and is well above the 70% threshold for overbought conditions. It has even traded above … Read more
After solar stocks soared in September, expectations are riding high for solar companies to carry their earnings momentum from the second quarter’s reports into the third quarter’s reports. First Solar (FSLR) made a big step in the right direction by announcing that it received an additional 380 Megawatt in orders from existing customers for delivery … Read more
Short interest in Cisco (CSCO) surged near 52-week highs at the end of August. At the time I noted this move, CSCO had bounced off its 52-week lows, and I suggested it would be a long if it could set a fresh high on the month. CSCO accomplished that move later in the day. I … Read more
In mid-May I tried to make a case for buying silver as a complement to holdings in gold. At the time, the gold/silver ratio looked ready to break lower and provide silver some lasting out-performance. Instead, silver peaked for the rest of the summer and gold regained its edge. Over 4 months later, the gold/silver … Read more
I bet many American solar companies wish they could get the kind of government sponsorship that Chinese solar companies can get from their government. Last week, I used Cetrotherm Photovoltaic’s deals with China as the latest examples of China’s seriousness about developing capabilities in solar technology. Today’s big news from China benefits LDK Solar, one … Read more
The lack of trading volume has been a common knock on the market, making any and every rally difficult to trust. But this is a market of stocks, and volume must be showing up somewhere, right? I decided to run a few scans to track down what stocks have really captured the market’s interest in … Read more
Over the last few months of tracking the S&P 500 I have not given much thought to the “reverse head and shoulders” (H&S) pattern. It is now time to pay attention. Friday’s continuation of the current rally is not just part of a steady uptrend from the August lows that has successfully punctured through important … Read more
Adobe Systems, Inc. (ADBE) was punished on Wednesday for an earnings report that produced guidance slightly below analyst expectations. The stock dropped as much as 26% after ADBE guided Q4 earnings to $0.48-0.54 EPS vs. $0.53 analyst consensus and Q4 revenues $950M to $1.0B vs. $1.03B analyst consensus (from briefing.com). The severity of the sell-off … Read more
Trader Mike asked on Tuesday whether the stock market is free at last of its trading range. He questioned whether the steep ascent can last in the midst of over-bought technical conditions. The financials are not confirming the advance (and likely weighing on the S&P 500 as it has underperformed relative to the NASDAQ). This … Read more