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 The Federal Reserve’s latest pronouncement on monetary policy was supposed to provide the drama of the week. However, the stock market yawned and resumed the buying of the summer of love at the open of trading the next day. Enter the Bank of Japan (BoJ) to provide the real drama. The fireworks … Read more
Stock Market Commentary The summer of loving stocks is staring down its second major test just two weeks after its first major test. Like the first test, the latest test is happening in the wake of the stock market’s failure to break through the overbought threshold on market breadth. Unlike the first test, the important … Read more
Stock Market Commentary: The summer of loving stocks is facing its first real test. In the middle of the week, the rally finally failed at the threshold of overbought market breadth. The stock market closed the week with market breadth confirming the end of the primary rally and the start of an important test of … Read more
Stock Market Commentary: The bulls were right at the frontier of overbought trading. The threshold defining overbought market breadth held firm and punched sentiment out of bullish territory. While this development is typically bearish, the summer of loving stocks still has uptrends supporting the potential for buying dips at moving averages. This is a time … Read more
Stock Market Commentary: Flying on the wings of an AI (artificial intelligence) gold rush, the NASDAQ may have delivered the swan song for its bear market. The latest rush of buying, sent the NASDAQ above its bear market line for the first time since last August. The path to this breakthrough was fraught with yet … Read more
Stock Market Commentary: What was quiet in the prior week is now loud and clear. Led by the NASDAQ, the stock market is in breakout mode. While market breadth is not quite endorsing the move, key breakouts are showing up in the indices and individual stocks. The inability of sellers to take advantage of bad … Read more
Stock Market Commentary: The U.S.’s looming debt ceiling crisis is a manufactured emergency. The whole political wrangling could end in an instant with a very simple decision to keep budget negotiations in the budget process. Thus, the stock market’s relative calm about the political stalemate does not surprise me. Moreover, who are the motivated sellers … Read more
Stock Market Commentary: In the previous week, the stock market put on a display of strength ahead of the Federal Reserve’s May decision on monetary policy. That bravado was temporarily undermined by the final blow to First Republic Bank (FRC). After a one-day pause, presumably to contemplate the implications of the lack of a coherent … Read more
Stock Market Commentary: On a weekly basis, the stock market seems to flip its abiding theme. One week after I accused the stock market of sleepwalking, buyers roused the major indices out of their slumber with a new and sudden display of strength. A 13.9% post-earnings surge from Meta Platforms, Inc (META) seemed to set … Read more
“We are encouraged that inflation is declining, and we are seized with the importance of staying the course and restoring price stability for Canadians. Inflation is coming down quickly and is forecast to be around 3% this summer. The economy is expected to grow modestly even as inflation comes down. This is good news, but it is not job done.” “Monetary … Read more