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 A potential peaking in mortgage rates may be the only good thing to say about today’s housing market. Sales continue to slide, input costs remain high, affordability continues to decline, and builder sentiment sinks lower and lower. The reports from August tell a consistent story of a steepening housing downturn. … Read more
Stock Market Commentary: Jerome Powell, and the Federal Reserve, remained resolute with the anti-inflation rhetoric. The stock market hated it. Slowing growth, recession fears, and hopes for “peak inflation” are still not producing the result Wall Street wants: a Federal Reserve backing down from monetary tightening, also known as “the pivot.” The bears seized the … Read more
Stock Market Commentary: And then there was just one. The S&P 500 (SPY) is once again the lone index of three that still trades just outside the clutches of the bear. The signs were flashing red last week as the bear market looked like it warmed right back up. The technicals of market breadth combined … Read more
Stock Market Commentary: Now I see why there was so little fanfare about the end of the bear market. Last week’s trading looks like a warm-up for a bear market comeback. The S&P 500 and the iShares Russell 2000 ETF (IWM) printed bearish confirmations of resistance at their respective 200-day moving averages (DMAs) (the blue … Read more
The conditions for bottoming in the ARK funds started to diverge a bit in late June. While the bottoming patterns differed, the ARK bottom synchronized with the general market’s bottom. Those conditions were born from the deeply oversold conditions that arrived in June. At that time, I interpreted the turmoil as the early days of … Read more