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: 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
Stock Market Commentary: Market breadth almost reached overbought trading territory last week. The Federal Reserve is issuing yet another missive on monetary policy this coming Wednesday. The market’s script is arranged for the potential drama of a collision between the euphoria of overbought trading and a Federal Reserve that is eager to moderate the market … Read more
Brutal Failure Turkish President Recep Tayyip Erdoğan’s “war of economic independence” has ended in a brutal failure. The president used his central bank to fight inflation with rate cuts and lost in spectacular fashion. This experiment with unconventional monetary policy severely devalued the Turkish lira (USD/TRY) and helped to generate massive inflationary pressures. The chart below … Read more
Stock Market Commentary: The summer of loving stocks may have begun. In a list of debt ceiling winners and losers, Vox failed to list the stock market as one of the biggest winners. The lingering and residual angst accompanying the manufactured drama of the debt ceiling released its hold on the market’s bias to go … Read more