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 The Presidential inauguration is a hallowed American tradition. The stock market celebrated the incoming Biden and Harris administration with new all-time highs on good trading volume. The start of a new American administration is as good a time as any to back down from my recent short-term bearish call. While this overbought … Read more
Stock Market Commentary A liquidity-driven bounce off support took a small breather last week. The major stock market indices ended the week with a small loss. On the way there, overbought trading conditions ended for a day. As the major indices languished, the stock market dipped in and out of overbought conditions on an intraday … Read more
On the day of the take-over of the Capitol building in Washington D.C., gunshot detection company ShotSpotter (SSTI) languished as if nothing extraordinary happened. However, the next day, SSTI shot up 7.6%. The following day, SSTI gained another 5.3% and closed at an important 1 1/2 year high. A sobering report on gun violence is … Read more
Stock Market Commentary What a week to start the year’s trading. It started with a definitively bearish end to extended overbought conditions. Overbought conditions bullishly resumed in the middle of the week despite an insurrection in Washington D.C. The week ended with a confirmation of the freshly bullish sentiment in the market. The trading action … Read more
Stock Market Commentary The weakening overbought conditions finally gave way to a full breakdown. The abrupt end of the overbought period ushers in the bear. Ironically, trading started well with the S&P 500 (SPY) gapping slightly higher at the open. The selling pressure started after the open and did not relent until lunchtime on the … Read more