ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
I saw a flicker of hope for home builders in the May Housing Market Review. Traders decided to snuff that flicker out very quickly afterward. When I wrote June’s housing market review and described a “struggling flicker,” the iShares US Home Construction ETF (ITB) was once again bouncing off the bottom of 2018’s trading range. … Read more
AT40 = 6.5% of stocks are trading above their respective 40-day moving averages (DMAs) (oversold day #8)AT200 = 11.0% of stocks are trading above their respective 200DMAsVIX = 30.4 (down 15.7%)Short-term Trading Call: bullish Commentary Pick your favorite catalyst or explanation. I am sure there is good news (or the absence of bad news) out … Read more
AT40 = 10.9% of stocks are trading above their respective 40-day moving averages (DMAs) (oversold day #2)AT200 = 15.8% of stocks are trading above their respective 200DMAs (new 34-month low)VIX = 24.5Short-term Trading Call: bullish (caveats below!) CommentaryThe week started as I expected based on the technical setup on Friday that I discussed in the … Read more
AT40 = 19.7% of stocks are trading above their respective 40-day moving averages (DMAs) (1st day oversold)AT200 = 20.7% of stocks are trading above their respective 200DMAs (34-month low)VIX = 21.6Short-term Trading Call: cautiously bullish CommentaryThe stock market is oversold again as a bearish divergence to start the week came to its “logical conclusion.” AT40 (T2108), … Read more
AT40 = 25.5% of stocks are trading above their respective 40-day moving averages (DMAs)AT200 = 23.4% of stocks are trading above their respective 200DMAs (just off a 32-month low)VIX = 23.2 (as high as 24.7)Short-term Trading Call: cautiously bullish CommentaryI am surprised the stock market has yet to close in oversold conditions. AT40 (T2108), the … Read more