ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The primary upward trend in the S&P 500 finally ended, and the advantage in trading finally goes to the sellers for the first time since August, 2010. For me, technically, the upward trend ended with the flattening of the 20DMA. I noted this important change yesterday. The confirmation of the end came today with the … Read more
Throughout the stock market’s meandering upward in December, I maintained that technical conditions were not yet overbought. I also noted that T2108, the percentage of stocks trading above their 40-day moving averages (DMAs), would likely not reach the overbought threshold (at least 70%) until a rush of “panicked buyers” sent the market soaring higher. I … Read more
Last week, I claimed that the market is not yet overbought and that any corrections in the short-term will most likely be shallow. Without some specific and new catalyst, traders and investors, especially the ones who missed this latest rally, will treat pullbacks as golden buying opportunities. Moreover, I noted how, as expected, many analysts … Read more
Time To Buy Solar Stocks? | Alternative Energy Stocks The sharp down move in recent weeks made me wonder if this might be a sign of capitulation. I don't follow the solar sector closely, but given its historic volatility, I think there is a lot of potential for astute traders to make money in the … Read more
Three weeks ago, I generated a list of stocks that demonstrated strong buying volume over the previous five days. During those five days, the S&P 500 finally broke out above the June highs but volume remained anemic and unimpressive. I figured focusing in on the stocks that did exhibit good buying volume during that important … Read more