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: Unlike the prior week, last week was all about the fundamentals, and the fundamentals made a huge difference. After failing to break through picture-perfect resistance levels, especially the 20-day moving averages (DMAs) (the dotted lines in the charts below), the indices were left vulnerable to selling pressure. The pressure started with Federal … Read more
Stock Market Commentary: Put all the headlines aside. Last week was all about the technicals. Picture-perfect support unfolded for the major indices and stopped bearish momentum dead in its tracks. Suddenly, the stock market went from the verge of confirming a short-term top from early February to looking ready to make a run at challenging … Read more
Stock Market Commentary: This stock market is one bullish bear market. A bear market perhaps cannot get more bullish than the current market. Since the October lows, the various indices have shown a general upside bias. As much time that I have spent the last several weeks looking for excuses to get bearish, the market … Read more
Stock Market Commentary: Last week ended the overbought period with a relatively strong report on initial claims for unemployment. The stock market – still freshly stung with the memory of the previous week‘s exceptionally strong jobs report – sold off sharply in response to the good economic news. A stubbornly resilient labor market continues to … Read more
The race is on in generative AI (artificial intelligence). Chat GPT introduced this natural language algorithm to a mass audience in November, 2022, and we love it so far. With a market proof at hand, companies are rolling out commercialization efforts. These conversational knowledge engines will find their way into more and more products and … Read more
Stock Market Commentary: On cue, the stock market groaned at fresh signs of economic strength, this time from another strong jobs report. The recession Wall Street wants is on hold yet again. The bullish intent that charged out of the wake of the Federal Reserve’s last statement on monetary policy made a sharp u-turn. The … Read more
Stock Market Commentary: The stock market had quite a bullish week especially considering another Federal Reserve meeting is right around the corner. The week started with a push into overbought conditions and buyers proceeded to slowly steepen overbought conditions the rest of the week. I am quite surprised by this bullish anticipation ahead of the … Read more
Stock Market Commentary: The S&P 500 defended support at its 200-day moving average (DMA) for the first time in 10 months. The index was down 1.7% at its lows where it pierced its 200DMA and looked ready to challenge its 50DMA. Buyers stepped in at that point and proceeded to reverse the entire loss on … Read more
Stock Market Commentary: Mid-week, fresh drama in crypto looked like the next pivot point for the stock market. Instead, the bout of selling turned into a forgettable speedbump. Buyers returned with force in Bitcoin (BTC/USD), and the major stock indices recovered from major technical breakdowns and tests. In recent weeks, the stock market has bounced … Read more
Stock Market Commentary: The last bullish run in the stock market came to an abrupt end. The day started on a positive note, but trading went awry after a mix of relatively unsurprising economic news releases and Fedspeak. News that the Justice Department would announce an international enforcement action against a cryptocurrency entity seemed to … Read more