ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
This week’s housing data were impressive. The Housing Market Index (HMI) for October reported another all-time for home builder sentiment. Subsequently, starts for single-family homes hit a fresh 13-year high. Yet, the stock market yawned. Housing-related stocks demonstrated rare signs of weakness not seen in a long time. Several stocks suffered breakdowns below their respective … Read more
I gave up on Teucrium Corn Fund (CORN) a long time ago. I grew weary of holding against a consistent downtrend waiting for bullish catalysts to materialize. Suddenly, for the first time in 14 months, CORN generated a breakout above its 200-day moving average (DMA). As a result, it is time to buy CORN. In … Read more
The Misdirection The New York Times (NYT) created buzz with a report alleging that members of the Trump administration enabled “elite traders” to profit off the coronavirus-driven collapse in the stock market. While the administration confidently reassured the public about the coronavirus (COVID-19), members of the administration reportedly shared their concerns about “uncertainties” at a … Read more
Stock Market Statistics AT40 = 56.5% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 53.1% of stocks are trading above their respective 200DMAs VIX = 27.4 Short-term Trading Call: cautiously bullish Stock Market Commentary The stock market made a bullish move last week as financials broke out, but I noted … Read more
Stock Market Commentary In my last post, I concluded that the stock market rebound made the market look “stronger than before.” Today’s big rally went beyond the call of duty. The S&P 500 (SPY) and NASDAQ (COMPQX) showed off their increased strength by closing well above their respective upper Bollinger Bands (BBs). While its gain … Read more