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 It was a close call. The technical deterioration of the previous week put the Santa rally in peril. At the start of trading last week, the Grinch roasted Santa enough to ignite oversold trading conditions. Santa’s revenge came in the form of a sharp rebound out of the 1-day oversold period. Subsequently, … Read more
Stock Market Commentary After the Grinch roasted Santa on an oversold fire, I expected a bounce with lots of churn into the holiday season. The bounce arrived right on schedule, but buyers had no patience for churn. The stock market look inspired by Santa’s revenge as a sharp oversold rally launched a broad swath of … Read more
Stock Market Commentary In last week’s decision on monetary policy, Federal Reserve Chair Jerome Powell directly and fully acknowledged inflationary pressures in the economy. Perhaps lost in the inflation buzz was Powell’s quick commentary on financial stability during the Q&A session: “…asset valuations are somewhat elevated, I would say.” Of course, various folks in the … Read more
Stock Market Commentary The stock market’s dip into oversold territory lasted a day. Subsequent trading has carved out a new divergence. Big cap stocks like Apple (AAPL) and Microsoft (MSFT) helped bullrush the S&P 500 into an all-time high while a wide swath of stocks were left behind. Accordingly, market breadth is languishing again. The following stocks charts … Read more
Between an accelerated share buyback program and executives using their own money to buy shares, Chegg, Inc (CHGG) finally looks ready for a price bottom. On November 29th, Chegg made the following proclamation in concert with the $300M acceleration of share repurchases: “The accelerated share repurchase demonstrates the strength of our balance sheet, and it … Read more