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: I expressed my surprise after the stock market soared in response to Fed Chair Jerome Powell’s inflation-fighting speech. I thought Powell simply reiterated known information with more reminders of the Fed’s inflation-fighting commitment. Since then, two strong economic reports in a row have sent the stock market into rapid retreat from that … Read more
Housing Market Intro and Summary In my last Housing Market Review, I described how a housing recession was reflected in the worsening housing data, including the latest report on U.S. GDP. While new home sales made another surprise bounce in October, the rest of the housing data continued to worsen in the month. However, a … Read more
Stock Market Commentary: The latest cryptocurrency scandal and implosion distracted the market (and me) from the upside potential of the October CPI (Consumer Price Index) report. Likely contagion, real and psychological, from crashing crypto prices helped drive distraught trading that created technical breakdowns across the major indices. U.S. midterm elections on Tuesday also apparently failed … Read more
Stock Market Commentary: The latest jobs report came on the heels of another post-Fed downer. The U.S. added 261,000 jobs but the unemployment rate ticked up from 3.6% to 3.7%. At the open, the market seemed to celebrate the potential implications for looser monetary policy despite the microscopic change in the unemployment rate. China delivered … Read more
Stock Market Commentary: I continue to underestimate just how much these bear market rallies price in misplaced optimism over monetary policy from the Fed. Although Chair Jerome Powell remained overall consistent with the Fed’s hawkish, inflation-fighting message, the stock market plunged after an initial post-release surge. Accordingly, the latest bear market breakthrough came to an … Read more