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 last quarter of the year and the third of the stock market’s most dangerous months started off with a swirl of signals. Each of the three major indices exhibited its own behavior. Small cap stocks plunged and uncorked oversold trading conditions. The S&P 500 clung to flatline. The NASDAQ happily shot … Read more
Stock Market Commentary The Federal Reserve helped unlock the stalemate in pricing action that stalled the bearish divergence tugging the market toward oversold trading conditions. Fed Chair Jerome Powell once again told financial markets the Fed remains as hawkish as ever. Expectations contracted for rate cuts next year, interest rates soared, and stocks plunged. While … Read more
Stock Market Commentary Last week was a time to avoid staring too hard at the day-to-day pricing action. The major indices were pretty much locked into a stalemate. Two breakouts were followed by two breakdowns. From a wider perspective, a stalemate has effectively been in place since mid-August. Despite my expectations, last month’s Jackson hole … Read more
Small caps were hit particularly hard in today’s follow-through to tech stocks pushing against technical limits. The iShares Russell 2000 ETF (IWM) went from a breakout above its 50-day moving average (DMA) despite a surge in interest rates and oil prices to a sharp 50DMA breakdown along with a further spike in interest rates and … Read more
Introduction I recorded a quick video to summarize my thoughts on today’s flip from bearish to bullish sentiment thanks to a bad news is good news kind of day. You can watch the video or read the transcript below curated, corrected, and organized by ChatGPT4 and then edited further by me. I am using this … Read more