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 sobering thought: American capitalism has yet to figure out how to sustain a stable banking system. The U.S. created the Federal Reserve system in 1914 as a response to the lessons from the banking Panic of 1907 and yet bank runs, bank panics, and bank failures continue to headline market dynamics … Read more
Stock Market Commentary: Unlike the prior week, last week was all about the fundamentals, and the fundamentals made a huge difference. After failing to break through picture-perfect resistance levels, especially the 20-day moving averages (DMAs) (the dotted lines in the charts below), the indices were left vulnerable to selling pressure. The pressure started with Federal … Read more
Stock Market Commentary: The last bullish run in the stock market came to an abrupt end. The day started on a positive note, but trading went awry after a mix of relatively unsurprising economic news releases and Fedspeak. News that the Justice Department would announce an international enforcement action against a cryptocurrency entity seemed to … Read more
Stock Market Commentary: The Fed said “no” in 2022. The Fed said no to inflation, no to easy money, no to the housing market, and pointedly said no to a stock market pleading for relief from an accelerated cycle for normalizing monetary policy. Instead of the typical routine rushing to the rescue of a plunging … Read more
Stock Market Commentary: A week ago, I cautioned that “the tenuous positioning is further weakened by a breakout of volatility and significant deterioration in the market breadth indicators.” The November CPI report showed the slightest surprise possible and faked out the stock market on the way to another hawkish statement from the Federal Reserve on … Read more