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: What was resistance for over two months is slowly becoming support for the stock market. The bullish trading action of the last week created an important breakout that confirmed the bottoming action from the previous week’s bullish engulfing pattern. While the stock market may continue to chase its tail before fighting its … Read more
The conditions for bottoming in the ARK funds started to diverge a bit in late June. While the bottoming patterns differed, the ARK bottom synchronized with the general market’s bottom. Those conditions were born from the deeply oversold conditions that arrived in June. At that time, I interpreted the turmoil as the early days of … Read more
Checking the Google Trends Momentum Check The Google Trends Momentum Check (GTMC) continues to perform well as a signal for a bottom in downward price action for Bitcoin (BTC/USD). Even the brutal crypto winter has delivered two more examples of how this indicator works. As a reminder, the GTMC signals a potential bottom when (worldwide) … Read more
The landscape of inflation and monetary policy continues to change fast. The June inflation numbers disappointed expectations once again for peak inflation. A surprise 1% point rate hike by the Bank of Canada combined with this hot inflation accelerated the timeline for peak interest rates from the Federal Reserve. Instead of a 75 basis point … Read more
Stock Market Commentary: The stock market is delivering fertile ground for bear market green shoots. Market breadth in the form of AT50 (MMFI), the percentage of stocks trading above their respective 50-day moving averages (DMAs), closed at a one month high. Under the hood are individual stocks achieving convincing 50DMA breakouts and closing out primary … Read more