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 Bring on the bears…The process terminating a historically extended overbought period started with the first trading day of the year. While the S&P 500 recovered from the year’s initial fit of selling, small caps did not. The sagging fortunes of small caps have now returned the related ETF to bear market territory. … Read more
Stock Market Commentary Exactly two weeks ago, the stock market fell out of bed. I called the abrupt move the rally’s third strike. However, buyers jumped right back into the fray and overcame that third strike with a rally right to the second to last trading day of the year. So far, the new year … Read more
Stock Market Commentary Signature stock market moments capped a remarkable year for the stock market. Two months of nearly relentless buying delivered a stunning 70% of the gains for the S&P 500 in 2023 after bulls exploded out of oversold trading conditions. Housing-related stocks soared even more as financial markets celebrate the presumed end of … Read more
Stock Market Commentary Despite strike one and strike two against the market rally, buyers are stretching out this overbought period. The jobs report for November seemed to further support the case of an economy that survived the Fed’s rate hike cycle even as the case recedes for near-term rate cuts. The stock market responded by … Read more
Stock Market Commentary The economic numbers keep coming up roses for the stock market. Last week’s celebration was driven by a soft inflation report for October that further emboldened buyers. A fresh surge in bond prices (lower yield) led the way as small caps in particular rocketed higher. The relentless buying pressure also solidified the … Read more