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 The S&P 500 (SPY) is a key driver of the stock market’s most predictable pattern. The index’s relentless rise this year has held the majority of the trading action above the 20-day moving average (DMA) (the dotted line in the chart below). Brief dips below the 20DMA set up tests of the … Read more
The Follow-Through: Strong Start for Stocks The month of September enjoyed a strong start as last week’s fairy dust from J-Pow continued to work its magic. Short-term market breadth with AT50, the percentage of stocks trading above their 50-day moving averages (DMAs), also continuing higher while leaving behind the longer-term breadth indicator in AT200, the … Read more
Stock Market Commentary Pattern trading uses consistent bets on repeated behaviors in financial markets. Over the course of time, pattern trading delivers profits from the diligent application of rules based on standard, technical setups in stock charts. The persistent uptrends and trading ranges in this pandemic stock market have delivered a surprisingly long stretch of … Read more
The Follow-Through: Quick Hits Weakness still lingers from the oversold bounce, but two trades I mentioned in my last Market Breadth post turned into quick hits in the first two days of trading this week. On Monday, Tesla (TSLA) quickly hit my initial profit target on a calendar call spread. I also snagged the calendar … Read more
Stock Market Commentary Welcome to the new world of “The Market Breadth.” I used the switch from AT40 (T2108) to AT50 (MMFI) as my market breadth indicator to improve the name of this blog series. The Market Breadth marks a change from a technical name that sounds like a Space X rocket to an English … Read more