ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Stock Market Commentary The S&P 500 (SPY) lost 0.7% for just its 4th down day of the 12 trading days of August. The index closed at an all-time high the previous day. The pullback looks like just one more tiny pinprick in the middle of a monster run-up during this pandemic. Yet the ongoing deterioration … Read more
Stock Market Commentary The upward drift in the stock market continued another week. The latest narrative comes from the cascading impact of the infrastructure bill settled in the Senate (I feel like the U.S. has passed this bill 10 times already!). While more wrangling lies ahead in the House of Representatives, the stock market felt … Read more
A False Breakout I started the week with Micron Technology, Inc (MU) as my favorite trade prospect. The breakout from last week was near poetry. MU enjoyed buying support most of the week as it first pushed through resistance at its 200-day moving average (DMA) (the blue line in the chart below) and next sliced … Read more
Stock Market Commentary Whether market breadth wanes or rallies, the stock market just maintains an upward drift through the path of least resistance. Last week, short-term market breadth partially improved thanks to a strong July jobs report. The lingering weakness from the previous week receded just enough to given the stock market a more bullish … Read more
Housing Market Intro and Summary “When will the housing market crash?” I hear this question from people astounded by the housing market’s strong performance during the pandemic. The housing market is not heading into a crash anytime soon. Demand remains strong, inventories are scarce, mortgage rates are rock bottom, home buyers are in strong financial … Read more