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 A bearish engulfing top pattern in the S&P 500 now seems like a distant memory. Yet, the melt-up in the stock market faces a new test. Just as the stock market enters its most dangerous months of the year in terms of drawdowns, a bearish divergence has emerged with market breadth. What … Read more
Stock Market Commentary The week closed with strong speculative energy, particularly in crypto, with the signing of a package of crypto legislation including a stablecoin bill. Surprisingly, the speculative frenzy did not translate into the overall stock market beyond a few select stocks like OpenDoor (OPEN). In fact, the major indices mainly had a steady … Read more
Stock Market Commentary After a holiday-shortened week, a market breadth breakout signals sentiment near peak bullishness. The market also seemed to interpret an unexpectedly strong jobs report as a positive, even as odds for rate cuts plunged (at the time of writing, 5% for later this month and 69.4% for September, down from 91% a … Read more
Stock Market Commentary A market calm emerged thanks to a pause on reciprocal tariffs and then a ceasefire in the US vs China trade war. This market calm shattered as a new tariff shock came in the form of President Trump threatening the European Union (EU) with a 50% tariff while at the same time … Read more
Stock Market Commentary The market ended the week on a quiet cliffhanger as major indices hovered under critical resistance levels. A defining theme was the muted reaction to major headlines, particularly around trade and stagflation risks. Despite the looming shadow of stagflation – a term not explicitly mentioned but clearly implied in last week’s Fed … Read more