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 A week ago I pointed out the key signs suggesting the bear cycle was likely already ending. Last week, the S&P 500 (SPY) confirmed the end of the bear cycle with fresh all-time highs. Yet, consistent with this year’s theme, market breadth was left behind in catch-up mode. The momentum on both … Read more
Stock Market Commentary The strong start to September which characterized the persistent complacency in the stock market soon gave way to the kind of selling that characterizes one of the most dangerous months of the year. September came to a bearish end with a 4.8% loss on the month for the S&P 500. The index … Read more
Stock Market Commentary The weight of deteriorating market breadth was undermining the stock market even as on-going rotations kept the indices floating higher. Last week, the tone made one of those periodic, yet still small, shifts. When news broke that Epic Games won a key provision of its lawsuit against Apple and its Apple Store, … Read more
Stock Market Commentary August was a breeze, and the stock market strolled in September. A few pebbles rolled into the path this week. The indices delivered divergent behavior which brings up familiar themes of rotation. Most notably, the rotations pressured market breadth as small caps in particular displayed fresh signs of weakness. The Stock Market … Read more
Overall Assessment I am bullish on Tri Pointe Homes (TPH). The Tri Pointe Homes Q2 2021 earnings report delivered strong results, including records for home sales revenue, pre-tax profit, and the value of the backlog. Management reported familiar themes of strong demand and constrained inventories across demographics and geographies. Margins improved as the company once … Read more