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
Apple Dividing Rally from Churn The latest cycle of the Apple Trading Model (ATM) happened between a legal setback for Apple and a product launch event. The week began somewhat hopeful with a small gain. Sellers ended the prospects for the Apple trade by fading the product announcement with a 1.0% loss and a close … Read more
One of the great features of options trading is the protection it offers against large absolute losses from surprise gaps in price from the underlying stock. That protection came in handy when casino and hotel company Wynn Resorts, Limited (WYNN) gapped down following news of a fresh regulatory crackdown in Macau, China. WYNN gapped down … 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
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