ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
After presenting my conditions for bottoming across the collection of ARK funds, the funds suffered a serious setback in the bottoming process. Some funds hit new lows and others cracked critical support levels. The stock market’s rebound from oversold conditions helped turn the tide and sentiment on the ARK funds. Interestingly, performance relative to key … Read more
Stock Market Commentary The edginess of the stock market continued this week. After “turnaround Tuesday” delivered broad based gains for the market, Fed Chair Jerome Powell’s testimony in front of Congress produced a familiar fade in the shadow of a bear market. Surprisingly, the buying was enough to end oversold conditions. Yet, the major indices … Read more
Stock Market Commentary The rumors were true. The Federal Reserve decided to pump up interest rates by 75 basis points (bps) (0.75%) instead of the 50 bps originally anticipated by financial markets. The historic move was the largest point increase since 1994. During the press conference explaining the latest decision on monetary policy, Chair Jerome … Read more
It is easy to forget that the months going into the COVID-19 pandemic were filled with fears of a recession. In response to mounting economic and political pressures, the Federal Reserve, led by Jerome Powell, reversed course on the Fed’s 3-year effort to slowly normalize monetary policy with what he called a “mid-cycle” rate adjustment. … Read more
Stock Market Commentary: Despite recent bouts of trading in or like a bear market, market breadth has somehow managed to avoid closing in oversold conditions. In fact, the last “official” oversold period was 518 trading days ago. Yet, since the NASDAQ topped out in November, market breadth has dropped into and out of oversold on … Read more