ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on January 22, 2012. Click here to read the entire piece.) Via an extremely strong Japanese yen, the world is offering Japan a steep discount on its assets. On January 19, 2011, Japanese Finance Minister, Yukio Edano, seemed to indicate that Japan … Read more
Toyota (TM) may be a beneficiary of the yen’s recent losses against the U.S. dollar as well as some encouraging economic news. As the U.S. dollar bottomed at fresh 15-year lows against the yen on November 1st, Toyota’s stock ended its last swoon. On November 4th, TM gapped up and closed 3% higher on a … Read more
Toyota (TM) filled the headlines of business news for several weeks as it struggled with seemingly unending revelations about its poor product quality. After about a month, sellers finally exhausted themselves, and TM began an impressive bounce. This bounce only lasted the same amount of time as the overall sell-off. TM peaked in late March, … Read more
The bottom in Toyota’s stock is looking more and more firm. As U.S. auto and truck sales rose 24.3% year-over-year in March, Toyota soared 40.7% on the wings of an intensive ad campaign and generous sales incentives. While one can argue that Toyota bought future sales, these numbers remain astounding in light of the recent … Read more
In her Nightly Business Report blog, Terri Cullen summarizes the potential economic impact of Toyota’s problems in “Toyota Recalls and the Economy.” In this article, Cullens suggests that what is bad for Toyota (TM) might be good for the U.S.: “The Toyota recalls may turn out to have a positive impact on the U.S. auto … Read more
The drama with Toyota (TM) has intensified this week with sharp and skeptical Congressional scrutiny. I have been impressed at how (relatively) well Toyota’s stock has held up through the negative news flow. As Toyota’s president Akio Toyoda pleaded for mercy on Wednesday – “My name is on every car…You have my personal commitment that … Read more
Toyota’s stock first broke down in late November when it plunged below the 200-day moving average (DMA) for the first time since 2007. Unlike 2007, this technical break led to a sharp rally and not a sustained sell-off. (At the time, I suggested a counter-trend rally was likely, especially if the yen weakened; but I … Read more
The stock for Toyota Motors (TM) broke below the key support line of the 200-day moving average today. Since peaking in August, TM has lost 12%. TM now looks poised for a test of the summer’s lows and perhaps even retesting of March price levels. *Chart created using TeleChart: TM is a major component of … Read more