ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Stock Market Statistics AT40 = 43.5% of stocks are trading above their respective 40-day moving averages (DMAs)AT200 = 44.9% of stocks are trading above their respective 200DMAsVIX = 25.8Short-term Trading Call: cautiously bearish Stock Market Commentary Tech stocks led the way up, and now they are leading the way down. The top 1% of the … Read more
Stock Market Statistics AT40 = 58.8% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 30.8% of stocks are trading above their respective 200DMAs VIX = 27.8Short-term Trading Call: neutral Stock Market Commentary I anticipated a shallow sell-off for a downward resolution to the bearish divergence in the stock market. However, … Read more
Cocoa prices have plunged along with the pandemic-driven crash in global financial markets. The iPath Bloomberg Cocoa Subindex Total Return ETN (NIB) reached a closing peak on February 13th just ahead of the global pandemic crisis. Since then, NIB is down 23.8%, a bear market in cocoa. Per my buy-the-dip strategy in NIB, this is … Read more
AT40 = 69.6% of stocks are trading above their respective 40-day moving averages (DMAs) (ends 1-day overbought period) AT200 = 63.1% of stocks are trading above their respective 200DMAs VIX = 12.1Short-term Trading Call: neutral Stock Market Commentary The stock market finally pushed into overbought territory on Thursday. The breakout only lasted for a day. … Read more
A Breakout and Reversal The price of cocoa has had a wild two months. Last month’s breakout quickly turned into a fade and an outright sell-off in December. The result for the iPath Bloomberg Cocoa SubTR ETN (NIB) is a complete reversal of the breakout, a return to the bottom of the previous consolidation range, … Read more