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 stock market delivered a gift on Friday as I scrambled to de-risk following the Bank of Japan’s drama on monetary policy. I braced for selling into bearish pressure and instead was pleasantly greeted by a broad push higher for stocks from the open. After the dust settled on the day, I … Read more
Uptrend in ITB: An Observation of 20-Day and 50-Day Moving Averages The calendar for the seasonal trade in home builders has come to an end. Yet, the iShares U.S. Home Construction ETF (ITB) looks as strong as ever. The uptrend in ITB is well-defined by a primary uptrend in the 20-day moving average (DMA) (the … Read more
That sigh of disappointment was Wall Street looking for signs of a weakening labor market in the June jobs report. Instead, that report showed job creation remains robust in the economy. Not only did the unemployment rate remain steady at a low 3.6% with the economy adding 372,000 jobs (far more than “consensus” expectations), the … Read more
When Cathie Wood anticipated a “doozie of a correction” in early 2021, she surely did not expect a complete collapse in the mania and bubble she had enjoyed during the first year of the pandemic. However, the cash machine betting on the downtrend in the ARK Funds may finally stop operations soon. Last week, one … Read more
Stock Market Commentary: Trading extremes led to a snapback rally as expected. However, the rally was short-lived as bear market action quickly resumed. The stock market looks like it is on the way to oversold trading conditions as March closing lows failed to hold as support. Fear is palpable as traders and investors scramble to … Read more