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 It was a close call. The technical deterioration of the previous week put the Santa rally in peril. At the start of trading last week, the Grinch roasted Santa enough to ignite oversold trading conditions. Santa’s revenge came in the form of a sharp rebound out of the 1-day oversold period. Subsequently, … Read more
Stock Market Commentary After the Grinch roasted Santa on an oversold fire, I expected a bounce with lots of churn into the holiday season. The bounce arrived right on schedule, but buyers had no patience for churn. The stock market look inspired by Santa’s revenge as a sharp oversold rally launched a broad swath of … Read more
Stock Market Commentary According to Investopedia, the Santa Claus rally “describes a sustained increase in the stock market that occurs in the last week of December through the first two trading days in January.” With the legendary rally still a week away, the S&P 500 (SPY) finds itself priced exactly where it was at the end … Read more
Stock Market Commentary In last week’s decision on monetary policy, Federal Reserve Chair Jerome Powell directly and fully acknowledged inflationary pressures in the economy. Perhaps lost in the inflation buzz was Powell’s quick commentary on financial stability during the Q&A session: “…asset valuations are somewhat elevated, I would say.” Of course, various folks in the … Read more
Stock Market Commentary The stock market wilted toward oversold territory ahead of the Federal Reserve’s latest pronouncements on monetary policy. However, the relief from hearing exactly what everyone expected was so large that the S&P 500 (SPY) gained 1.6% and almost hit a new all-time high. The move fooled a lot of people (see below). … Read more