ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Thoma Bravo’s Buying Framework Amid the AI Panic The AI-driven fear in software stocks is palpable with daily headlines and relentless product releases from the AI disruptors. The buying opportunities are broadening so fast that I have to create and maintain a structured framework for separating the survivors from the laggards. As a part of … Read more
The Market Breadth Summary Stock Market Commentary The first month of the new year ended in an eventful fashion with significant news both good and bad, sometimes abrupt. The bad news convinced me to go risk off again as breakdowns and pullbacks weighed heavily on individual stocks. The major indices hid the extent of the … Read more
The Market Breadth Summary Stock Market Commentary I am risk off in the coming week because market breadth failed twice at the overbought level. One failure is enough to make me cautious, but two tells me that the market is fighting too hard just to go higher. Moreover, earnings season is in full swing. For … Read more
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