ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The grinding bear market in financial markets has quickly created what I am calling “A Culture of Collapse.” The collapse is on vivid display in the stocks of home builders and other related housing and construction stocks. I cataloged the collapse in housing-related stocks that took on dramatic form two days ago. The iShares Dow … Read more
It seems every week I need to generate new superlatives to describe the epic collapse in the stock market. For the housing-related stocks, forget animal spirits getting trampled. This time around the walls have all caved in on the sector. Today’s third crash during this sell-off in the stock market featured a complete collapse in … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on February 12, 2015. Click here to read the entire piece.) KB Home (KBH) has made good on its promise to focus more on short-term monetization. Since reporting disappointing earnings on January 13, 2015, KBH has already announced six openings, grand openings, … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on January 9, 2015. Click here to read the entire piece.) It is still very early in the new year, but I cannot help notice the relative strength exhibited by iShares Trust – iShares U.S. Home Construction ETF (ITB) and several major … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on February 19, 2014. Click here to read the entire piece.) Back in 2009, I was as bearish on housing as anyone. For example, I wrote two pieces pointing to massive insider stock sales at Toll Brothers (TOL) as evidence that company … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on July 19, 2013. Click here to read the entire piece.) “‘It’s romantic for the first 15 years when you’re turning 65 and retired…But aging in place among 90-year-olds? 95-year-olds?’ Many of these people…won’t realize that they can’t mow the lawn or … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on January 6, 2014. Click here to read the entire piece.) {snip} The above quote pretty much sums up the attitude of homebuilders (ITB) going into 2014. It sounds like a classic sales pitch from a real estate agent, but the evidence … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on September 29, 2013. Click here to read the entire piece.) {snip} Source: St. Louis Federal Reserve Homebuilder stocks joined most rate-sensitive plays by falling sharply from their lofty levels once the direction and momentum of rates became clear. {snip} I consider … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on June 17, 2013. Click here to read the entire piece.) In September of last year, Toll Brothers (TOL) printed a near 7-year high. It was the culmination of an amazing 12-month run that took the stock up 164% from a retest … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on May 5, 2013. Click here to read the entire piece.) In late November, 2012, I made a list of my homebuilder picks for 2013. I combined valuation, price changes, and short interest to build the list. Almost 6 months later, it … Read more