ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Software stocks suffered significant carnage last week and further tested my plan to target buys of beaten up software stocks this year. With his company caught up in the vortex, Box Inc (BOX) CEO Aaron Levie appeared on CNBC to give his version of an “everyone keep calm” speech. Levie presented a compelling platform-level case … Read more
The Market Breadth Summary Market rotation is improving participation, but a fresh warning from market breadth keeps me cautious. Small caps and defensives are attracting capital while tech weakness quietly undermines leadership. I remain neutral after AT50 reversed from overbought levels, issuing a fresh warning despite bullish index trends. The disconnect between strong indices and … Read more
The Market Breadth Summary Small cap stocks led a market breadth breakout, then faded just short of overbought, leaving me encouraged by momentum but wary of a near-term pullback. The S&P 500 ground to fresh highs, while the NASDAQ lagged by stalling at prior peaks. A clean breakout still awaits for the NASDAQ. CES-driven leadership … Read more
The year 2026 is off to a fast start. After immediately testing my shopping list for the year on software stocks, and Intel Corporation (INTC), headlines from NVIDIA (NVDA) at the Las Vegas Consumer Electronics Show (CES) pressed my positioning in AI-related stocks. CEO Jensen Huang declared (emphasis mine): “The power of Vera Rubin is … Read more
Stock Market Analysis Summary Mounting pressure on software stocks stands out as weakening market breadth coincides with multiple key technical breakdowns. A neutral stance remains appropriate as market breadth continues to deteriorate, offsetting selective AI-driven strength in semiconductors and small caps. Buying decisions stay highly selective, with technical confirmation guiding risk while bearish signals continue … Read more