ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Housing Market Intro and Summary The spring selling season housing market looked “defiant” going into the end of a cycle. In June, the housing market looks like it refuses to let the cycle end as it sails past the expected sunset. New home sales and housing starts surged as the market for existing homes barely … Read more
Stock Market Commentary: The summer of loving stocks is facing its first real test. In the middle of the week, the rally finally failed at the threshold of overbought market breadth. The stock market closed the week with market breadth confirming the end of the primary rally and the start of an important test of … Read more
Stock Market Commentary: The bulls were right at the frontier of overbought trading. The threshold defining overbought market breadth held firm and punched sentiment out of bullish territory. While this development is typically bearish, the summer of loving stocks still has uptrends supporting the potential for buying dips at moving averages. This is a time … Read more
Stock Market Commentary: Last week started strong with Goldman Sachs (GS). Analysts there looked beyond the coming Federal Reserve meeting and hiked their year-end price target for the S&P 500 to 4500. The index quickly moved half the remaining distance and opened the door for more price chasing by analysts before 2023 hits the halfway … Read more
The Federal Reserve gave tacit approval to the unfolding summer of loving stocks. In its June decision on monetary policy, not only did the Fed hold interest rates steady, but also it rolled out improved overall forecasts for the economy. GDP growth for this year went from 0.4% to 1.0%, presumably lowering the odds for … Read more