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 Sellers beat a hasty retreat from the stock market as another bearish signal enjoyed a fleeting existence. The last bearish period lasted about three days. The previous bearish period barely survived a day. The stock market’s ability to quickly wipe away bearish signals is impressive. The buying force over the last week … Read more
Stock Market Commentary The stock market gapped up and never looked back in the wake of the Presidential Inauguration. Subsequently, buyers produced mixed follow-through for two days. Big cap tech defied the narrative of a rotation into value and industrial names by delivering the most convincing follow-through. A third drop from overbought conditions in a … Read more
Stock Market Commentary A liquidity-driven bounce off support took a small breather last week. The major stock market indices ended the week with a small loss. On the way there, overbought trading conditions ended for a day. As the major indices languished, the stock market dipped in and out of overbought conditions on an intraday … Read more
Bollinger Bands (BBs) are a powerful trading tool. They define an expected range of volatility in a stock based on recent price action. When that volatility contracts, the Bollinger Bands squeeze into a narrow channel. The resolution of that squeeze – to the upside or downside – can create a powerful continuation of or change … Read more
Stock Market Commentary What a week to start the year’s trading. It started with a definitively bearish end to extended overbought conditions. Overbought conditions bullishly resumed in the middle of the week despite an insurrection in Washington D.C. The week ended with a confirmation of the freshly bullish sentiment in the market. The trading action … Read more