I think it was the venerable Jim Grant who I remembered hearing emphasize that markets are reciprocals. Risk is what you take, price is what you pay & value is what you get. Quite often the explanation after the fact is getting cause and effect backward. Bonds strengthen with volatility, leading to market sell off. …
Author Archives: scores
Trillion Dollar Tweets, RIP
Here’s an actual Bloomberg headline which shows just how fake the “markets” have become… Stock Traders Wait Anxiously for a Trump Tweet to Reverse Rout three weeks after the president rekindled the trade war with China, sending the Dow into a 4% tailspin, traders are growing increasingly impatient for their dose of White House succor. …
Financial Securities Melt Down, Bitcoin Melts Up
Once again the stock market was down bigly on the ongoing trade war headlines. One of the few asset classes that has not crapped the bed recently is cryptocurrencies, which have rallied hard over the past couple weeks. Are cryptocurrency investors betting on financial conditions getting so bad the Fed has to cut rates? Why …
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Roku, Zillow & Uber
Roku smashed their quarterly numbers, which led to a big pop at open yesterday & the stock was up over 25% on the day. They are winning on top of winning, with revenue per user up, users up, and users using their service more and more. Zillow reported quarterly numbers which beat expectations & have …
The Credit Markets Drive the Stock Market
The following Brian Reynolds interview by RealVision highlights how important pension funds are for driving the credit markets & stock market. A few notes from it: pension funds are significantly underfunded & they roughly need to get about a 7.5% return to meet cashflow obligations pensions tend to prefer the credit markets to the stock …
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Scientific Games
Scientific Games (SGMS) reported earnings & the market reaction was beautiful with a powerful short squeeze causing the stock to jump 15%. I figured they were going to have a positive reaction to their earnings announcement, if for no other reason the ability to shift narrative. they had just recently spun out their SciPlay mobile …
Trading the Trade War
The trade war ending has already been priced into the market, which is part of why the market has tanked for the last couple days after another round of Trillion dollar Tweets. When the market sold off Monday I sold off the VIRT position I had recently established. By close of Monday the stock market …
CMGI Sighting: Taking a Break from Trading
I’ll still read about the capital markets daily, but I have found trading quite distractive when considering my daily workflow. I’ve sold most my positions other than WBA, CVS, a REIT & a somewhat negatively correlated stock that tends to outperform when the market craps the bed. In the current market where a flood of …
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CVS Panning 2018 Q4 Was…
… a great buying opportunity. Which is part of why insiders were buying. CVS is up around 5% in premarket trading today. They beat earnings & revenues, raised full year guidance, outperformed in their retail business & outperformed in their health-care benefits segment. A month ago they were under $52 a share & a week …
Google Guts Stock Market
When I saw they were down almost $100 a share in after hours trading yesterday I knew today was going to be a down day for the market. You’d just about need a signed deal ending the trade war with China (allegedly resolved one way or the other within weeks) to get markets back up …