After the market closed today (Monday), I saw on my news feed that Verifone Systems (PAY) had agreed to be acquired at a huge premium to its closing price, about 50% higher than the market. That’s not especially interesting news to anyone that doesn’t have a position in the stock, but I do. And it’s a short position. And that, as you might guess, is not a good thing.
I am sharing this bit of bad news as an object lesson in risk management, however. Because after I found this out, I asked myself the following questions and gave myself the following answers: (more…)
Wells Fargo is struggling to re-enter its long-term upward-trending Andrew’s Pitchfork channel, as shown on the following monthly chart of WFC.
The momentum indicator has fallen below the zero level on this timeframe and has formed a lower swing low…hinting of further weakness ahead. And, as I mentioned in this February post, major support is at 50.00, so a break and hold below would likely see price retest the October 2016 lows, or drop lower.
* UPDATE @ close…WFC continued its intraday drop and closed near its low of the day at 52.26. (more…)
Since the BTFD crowd and “it’s still a bull market” imbeciles were after me today, I thought this would be appropriate…………..
As we move deeper into the year 2018, and as the market slips lower, I am increasingly confident that the gargantuan bull market that started on March 6 2009 ended on January 26 2018. We all know that no one rings a bell at the top………but I think we’re all starting to hear the ringing anyway.
With that in mind, I decided to take a look backward at the kind of chatter that was going on in mainstream financial media when the market was peaking. What became quickly there clear was two “legendary” voices – – Bill Miller and Jeremy Grantham – – took center stage and encouraged people to throw all their money into an equity market that had already gone up over 300%.
Let’s start with the first “legend” – – Bill Miller – – who in January 2018 (that is, the month the market reached its highest peak in human history) notified planet Earth that the market was going to “melt up” by 30%. (more…)
We began months ago, noting the 3 Amigos destined for their goals. Here’s a post from November 2017 explaining the macro fundamentals involved:
Updating the 3 Amigos of the Macro
- Amigo #1 (SPX vs. Gold): Either reach major theoretical resistance (it’s a ratio, after all) or abort mission by establishing a downtrend.
- Amigo #2 (10yr yield to 2.9% and 30yr yield to 3.3%): Destinations reached!
- Amigo #3 (also known as the slower, dumber Amigo, the 10yr-2yr Yield Curve): Still on his journey, flattening. The trouble would be indicated by steepening.
Back on February 28th, I did this post about the triangle setup for Acadia Pharmaceuticals. Here’s what the chart looked like:
We’ll see how Congress grapples with those issues, and others, when they grill Facebook CEO Mark Zuckerberg when he testifies before them this Tuesday and Wednesday.
Facebook faces similar scrutiny by other countries over the coming weeks, so their issues are global and not likely to be resolved overnight.