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 was full of dramatic price swings. Traders reacted in extreme ways to key earnings results. The wild behavior cascaded out to related stocks. Some of the collateral damage in the blast radius likely came from portfolio managers scrambling to rebalance holdings. I expect this kind of action to continue through … Read more
Housing Market Intro and Summary A hawkish Federal Reserve has changed the game for the housing market. At first, I thought the normalization in monetary policy would generate a “settling in” for the housing market. However with inventories tight, a scarcity in available labor, rising material costs, and a dysfunctional supply chain, higher rates may … Read more
Stock Market Commentary: The churn zones continued to hold sway over the market last week. Buyers effectively fought off a descent into a bear market by rallying the major indices up and out of the churn zone. Still, the narrative of churn stands thanks to a refresh of fear from Facebook’s post-earnings blow-up. Meta Platforms, … Read more
There was a hopeful narrative going into the last week’s Federal Reserve meeting that Fed Chair Jerome Powell and company would emerge more dovish. The stock market’s sell-off this year could frighten the Fed into standing down from its earlier insistence about tightening monetary policy. Not only did Powell stride into the press conference unbowed … Read more
Stock Market Commentary The stock market is scraping by just above oversold territory. The churn of last week has created a mosaic different trading conditions. The bears are salivating at the all-time lows. The hopefuls like me are finding slivers of opportunity in the breakouts. The stock charts in this review cover some of everything. … Read more