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: Last week delivered a series of confirmed breakouts that served to uphold bullish belief in the stock market. Even as the overall rally looks to continue, the market’s most troubled corners showed weakness at the end of the week. These holdouts failed to break through important resistance levels. Some of these growth … Read more
Stock Market Commentary: I stuck to my cautiously bullish short-term trading call in my last “Market Breadth” post. Signature stocks Apple and NVIDIA lead a relentless comeback that symbolizes a market that finally had nowhere to go but up. Buyers ignored a hawkish Federal Reserve and the escalation of violence from Russia’s invasion of the … Read more
Stock Market Commentary Russia’s invasion of Ukraine has created massive human misery and a historic press of global economic sanctions. With war comes scarcity and the allocation of resources to destroying the resources of others. Financial markets are scrambling to adjust to the new global wartime economy. These charts are just a snapshot of some … Read more
Stock Market Commentary Trading with on-going headline risk is difficult for bulls and bears. I find it useful to pick a narrative, pick an anchor, and stay as disciplined as possible. My foundation remains with the principles of trading contrary to extremes. Last week, the market tested the extremes of oversold trading conditions and survived … Read more
Stock Market Commentary I earlier wrote about a promising divergence between anxiety and breadth in the stock market. However, I cannot help rubbernecking the market’s crashes and accidents. They tell dramatic stories about the folly in price action that can come with easy monetary policy and free money. The market goes through cycles of excitement … Read more
Stock Market Commentary A promising week of post-oversold trading ended in tensions over inflation, interest rates, and Ukraine. Overall, the stock market remains locked in churn. Yet, the view from individual stocks can provide cause for greater alarm. End of the week selling in big cap tech raised a red flag against my overall bullishness … Read more
Stock Market Commentary The stock market is scraping by just above oversold territory. The churn of last week has created a mosaic different trading conditions. The bears are salivating at the all-time lows. The hopefuls like me are finding slivers of opportunity in the breakouts. The stock charts in this review cover some of everything. … Read more
Stock Market Commentary I earlier wrote about a forlorn stock market writing a love note to the Federal Reserve. This love note comes in the form of a basket of sell-offs. The selling is so broad and so deep that traders could throw a dart and find descriptive stock charts. The examples below are some … Read more
Based on its last earnings report, used car company Shift Technologies, Inc (SFT) reads fine as a company. However, the stock is as ugly as can be. The only company-specific catalyst I could find to assign blame was the expiration of a lock-up on insider shares earned from warrants. There is little reason to expect … Read more
Stock Market Commentary My bullishness waned with last week’s manic trading action. I called the resulting patterns choppiness toppiness to reflect a biding sense that the market is churning out some kind of lasting top. Still, under the surface of the churn is a fresh divergence. The stock market is full of digital lows and … Read more