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 A promising week of post-oversold trading ended in tensions over inflation, interest rates, and Ukraine. Overall, the stock market remains locked in churn. Yet, the view from individual stocks can provide cause for greater alarm. End of the week selling in big cap tech raised a red flag against my overall bullishness … Read more
Back in October and November, Bitcoin (BTC/USD) created renewed excitement when the cryptocurrency challenged its all-time high and then set three new all-time highs. Unfortunately, the breakout turned into a fakeout. Bitcoin peaked with the NASDAQ (QQQ) in November as financial markets moved away from aggressively priced risk assets. However, a more sustainable bottom may … Read more
Stock Market Commentary Last week was full of dramatic price swings. Traders reacted in extreme ways to key earnings results. The wild behavior cascaded out to related stocks. Some of the collateral damage in the blast radius likely came from portfolio managers scrambling to rebalance holdings. I expect this kind of action to continue through … Read more
Stock Market Commentary The stock market is scraping by just above oversold territory. The churn of last week has created a mosaic different trading conditions. The bears are salivating at the all-time lows. The hopefuls like me are finding slivers of opportunity in the breakouts. The stock charts in this review cover some of everything. … Read more
Stock Market Commentary I earlier wrote about a forlorn stock market writing a love note to the Federal Reserve. This love note comes in the form of a basket of sell-offs. The selling is so broad and so deep that traders could throw a dart and find descriptive stock charts. The examples below are some … Read more
Stock Market Commentary: The stock market is expressing its disappointment with the Federal Reserve’s plans to tighten monetary policy. The Fed will have the backdrop of a sharp market sell-off when it meets this week to further execute on those plans. Like a forlorn partner, stocks sent a wistful love note to the Fed asking … Read more
Stock Market Commentary Investor psychology took another hit. A spirited relief rally turned into a dispiriting fade and reversal that had tinges of bear market action. The bear-like fade stretched the stock market closer to oversold trading conditions. All three major indices covered here are now setting multi-month lows. They are also very extended to … Read more
Stock Market Commentary Investor psychology took an important hit this week. During the Goldman Sachs (GS) Q&A period for the Q4 2021 earnings conference call, Chairman and CEO David Solomon dropped an inflation bomb. Solomon claimed that “there is real wage inflation everywhere in the economy, everywhere” (from the Seeking Alpha transcript). Solomon responded to … Read more
“…certainly with valuations where they are, I’m sure we’re going to go through a doozy of a correction this year. At some point. I don’t know when. And I don’t know why. But I do know, it never hurts to take profits and to keep some powder dry so that you have the psychological wherewithal … Read more
Stock Market Commentary My bullishness waned with last week’s manic trading action. I called the resulting patterns choppiness toppiness to reflect a biding sense that the market is churning out some kind of lasting top. Still, under the surface of the churn is a fresh divergence. The stock market is full of digital lows and … Read more