ONE-TWENTY TWO: Trading Financial Markets
Since the year 2000, delivering a different narrative for students and fans of financial markets: stocks, options, currencies, Bitcoin, and more…
Stock Market Commentary A bear market intrusion upset the dynamics of this oversold period. The NASDAQ is back in bear market territory. Both the NASDAQ and the S&P 500 broke down below their respective 200-day moving averages (DMAs) (the blue line in the charts below) and entered “correction” territory which is 10% below the 52-week … Read more
Stock Market Commentary “This may be the most dangerous time the world has seen in decades.” This statement from Jamie Dimon, CEO of JPMorgan Chase (JPM), concluded his commentary on the bank’s Q3 earnings report. These words on Friday morning fittingly concluded a sobering week that started with tragedy and war raging in Gaza and … Read more
Introduction I recorded a quick video to summarize my thoughts on today’s flip from bearish to bullish sentiment thanks to a bad news is good news kind of day. You can watch the video or read the transcript below curated, corrected, and organized by ChatGPT4 and then edited further by me. I am using this … Read more
Stock Market Commentary Stocks stumbled their way through a week fraught with hopes and fears for Fed Chair Jerome Powell’s speech at Jackson Hole. With looming oversold conditions, the most significant technical event occurred with a bearish engulfing right under important resistance levels for both the S&P 500 and the NASDAQ. The relief buying that … Read more
Stock Market Commentary The annual Jackson Hole confab of central bankers starts this coming Thursday. Almost like technical poetry, the S&P 500 and the NASDAQ are back to the highs directly preceding Jackson Hole 2022. Depending on your perspective, this Jackson Hole redux either represents a bullish confirmation of the market’s resilience after 18 months … Read more
Stock Market Commentary The summer of stocks looks like it is winding down as trading dynamics transition into the stock market’s most dangerous months. The complete reversal of July’s gains on the major indices represents the most ominous sign of the transition. Technology stocks in particular have flipped from rocketships to anchors weighing on the … Read more
Stock Market Commentary A week ago, buyers did their best to push against topping stock indices by restarting overbought conditions. That overbought period lasted just 3 days as a Fitch downgrade of U.S. Treasury debt freshly cooled the summer of loving stocks. The resulting selling confirmed topping conditions and greased the skids of the stock … Read more
Almost a year ago, I claimed that investing in ARK Innovation ETF (ARKK) was little different than speculating on initial public offerings in the Renaissance IPO ETF (IPO). I was both right and wrong. On the way down, IPO far out-performed ARKK in 2021 and 2022. However, ARKK has benefited more than IPO in this … Read more
Stock Market Commentary The stock market pushed into overbought conditions last week. After one follow-through day, small caps wilted and dragged down market breadth toward the overbought threshold. That key setback raises the stakes of the current earnings period. I will try to look through the likely “chop” in the trading action, to identify on-going … Read more
Stock Market Commentary The summer of loving stocks survived its first major test. The numbers for the first half of the year put an exclamation on a rally that has defied most expectations. The S&P 500 (SPY) had its 12th best first half since at least 1933 (per Cater Braxton Worth) with a 15.9% gain … Read more