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 And just like that, the bullish expansion of market breadth hit a wall…a wall of inflation. The October Consumer Price Index (CPI) for all urban consumers apparently surprised financial markets by soaring 0.9% from September and 6.2% over October, 2020. The chart below shows that both surges are at the high end … Read more
Housing Market Intro and Summary The housing market’s comfortable calm continued into September even as the stock prices of home builders raced downward. A general sell-off in the stock market ensnared housing-related stocks. Yet, the housing data reported in September showed little change from the prior month. While home builder stocks ignore the calm in … Read more
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
Housing Market Intro and Summary Despite more evidence of slowing conditions in the housing market, home builder stocks remained relatively resilient in August. The underlying dynamics of demand remain in place even as housing prices remain lofty and continue to conjure up images of a housing bubble for market commentators and pundits. A supportive Federal … Read more
Stock Market Commentary Say whatever you want, Jerome (Jay) Powell, the chair of the Federal Reserve, affectionately known as J-Pow, has become a master orchestrator of the stock market. Other Federal Reserve Board members peppered the airwaves with hawkish talk about tapering and inflation in the days preceding Powell’s address at this year’s Jackson Hole, … Read more