ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
This week, I blithely accumulated call options on Goldman Sachs (GS) ahead of and after the Federal Reserve’s latest declaration on monetary policy. I assumed that the Fed’s calming influence would remind market participants that the economy is fine and the prospects are good. Under that scenario financial stocks would do well as long-term interest … Read more
I heard commentary after the Fed’s proclamation on monetary policy on March 21st that the Fed is “one vote away” from 4 rate hikes this year. Yet, something strange happened along the way to over-speculation on the number of rate hikes in 2018: the traders putting their money on the line on the 30-Day Fed … Read more
AT40 = 42.9% of stocks are trading above their respective 40-day moving averages (DMAs) (traded as low as 37.6%) AT200 = 47.9% of stocks are trading above their respective 200DMAs VIX = 19.0 (traded as high as 21.9) Short-term Trading Call: neutral Commentary In my last Above the 40 post, I described how the stock … Read more
AT40 = 48.5% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 52.9% of stocks are trading above their respective 200DMAs VIX = 14.6 (11.5% drop) Short-term Trading Call: bullish Commentary The (expected) plunge in the volatility index, the VIX, says it all…the stock market is ready to return to its … Read more
AT40 = 36.2% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 50.4% of stocks are trading above their respective 200DMAs VIX = 16.5 Short-term Trading Call: neutral (awaiting confirmation of bullish breakout) Commentary Something woke the bulls and buyers back up enough to get the steamroller warmed up again. The … Read more