ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
A little over six months ago, I made a bearish case for Acacia Communications (ACIA) and Twilio (TWLO) based on the way each company rolled out follow-on stock offerings and the market’s reactions to the selling. Since then, ACIA and TWLO have fully lived up to bearish expectations. ACIA is down 55.1% from its offering … 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
I raise yellow flags when companies implement a secondary stock offering soon after going IPO, especially after the stock has experienced a massive run-up. I get even more worried when the majority of the shares are being sold by shareholders rather than the majority of proceeds going into corporate investments. Two recent IPOs have popped … Read more