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 Trading with on-going headline risk is difficult for bulls and bears. I find it useful to pick a narrative, pick an anchor, and stay as disciplined as possible. My foundation remains with the principles of trading contrary to extremes. Last week, the market tested the extremes of oversold trading conditions and survived … Read more
Stock Market Commentary: When Russia launched a full scale invasion of Ukraine, financial markets took heavy hits. Overnight, I anticipated a drop into oversold trading conditions for the U.S. stock market. Those oversold trading conditions were surprisingly and exceptionally brief. The major indices gapped down well below their lower Bollinger Bands (BB), and I waited … Read more
Stock Market Commentary: A divergence still exists between the anxiety in financial markets and market breadth, but that divergence is no longer so promising. Sellers rushed into the close as rumblings rolled of an escalation in the Ukraine-Russia conflict. After Putin followed through with a nighttime strike against Ukraine, stock market futures sold off sharply. … Read more
Stock Market Commentary I earlier wrote about a promising divergence between anxiety and breadth in the stock market. However, I cannot help rubbernecking the market’s crashes and accidents. They tell dramatic stories about the folly in price action that can come with easy monetary policy and free money. The market goes through cycles of excitement … Read more
Stock Market Commentary: The market feels heavy and bearish. Yet, the major indices continue to bounce between the edges of their “churn zones.” Last week’s churn delivered a surprising ray of light tantalizing the dour sentiment. While the S&P 500 and the NASDAQ closed with a second straight week of losses, the major breadth indicators … Read more