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 Welcome to the start of the stock market’s three most dangerous months of the year. A weak jobs report for July helped to send market sentiment into a sharp reversal. The bad economic news suddenly turned the prospect of rate cuts into something to fear. These rate cut fears spun the market … Read more
Stock Market Commentary Bears still look ready to bow out, but they still have their paws firmly planted on high-tech stocks, especially semiconductors. The market rotations out of tech are nudging enough stocks higher, especially small caps, to rechallenge the threshold defining overbought conditions for market breadth. The stark divergence in stocks greatly reduces the … Read more
Alphabet, Inc (GOOG) was my favorite stock in my generative AI trade. No more. After OpenAI announced SearchGPT, GOOG fell 3.0%. The decline followed a 5.0% post-earnings loss and confirmed a bearish breakdown below the 50-day moving average (DMA) (the red line in the chart below). While SearchGPT is still a prototype, even the idea … Read more
Stock Market Commentary Last week further emphasized the continuation of notable divergence from Q2 to Q3. This time, soft inflation data caused a surge in rate cut anticipation that in turn drove a significant rotation away from big cap growth and tech stocks and toward small caps and a whole host of other rate sensitive … Read more
Stock Market Commentary The second quarter of the year ended with notable divergence. The third quarter picked up where the second quarter left off. Q3 took the Q2 baton of notable divergence, sending big cap stocks ever higher while leaving most of the market further behind. The jobs report seemed to be strong enough and … Read more