ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Uptrend in ITB: An Observation of 20-Day and 50-Day Moving Averages The calendar for the seasonal trade in home builders has come to an end. Yet, the iShares U.S. Home Construction ETF (ITB) looks as strong as ever. The uptrend in ITB is well-defined by a primary uptrend in the 20-day moving average (DMA) (the … Read more
Stock Market Commentary: What was quiet in the prior week is now loud and clear. Led by the NASDAQ, the stock market is in breakout mode. While market breadth is not quite endorsing the move, key breakouts are showing up in the indices and individual stocks. The inability of sellers to take advantage of bad … Read more
Stock Market Commentary: The U.S.’s looming debt ceiling crisis is a manufactured emergency. The whole political wrangling could end in an instant with a very simple decision to keep budget negotiations in the budget process. Thus, the stock market’s relative calm about the political stalemate does not surprise me. Moreover, who are the motivated sellers … Read more
Stock Market Commentary: In the previous week, the stock market put on a display of strength ahead of the Federal Reserve’s May decision on monetary policy. That bravado was temporarily undermined by the final blow to First Republic Bank (FRC). After a one-day pause, presumably to contemplate the implications of the lack of a coherent … Read more
Housing Market Intro and Summary The fresh hope from a peak in mortgage rates has expanded into an ever stronger spring selling season for the housing market. Despite double digit year-over-year declines keeping existing home sales and housing starts in recessions, new home sales have almost reversed all their losses since the Fed started hiking … Read more