ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Housing Market Intro/Summary The stocks of home builders are starting to fail their moment of truth. A Moment of Truth Looming Ever Larger On October 25th, the iShares Dow Jones Home Construction ETF (ITB) hit a 21-month high that coincided exactly with a major multi-year peak and post-recession high from January, 2018. The sellers showed … Read more
This is a moment of truth for the stocks of homebuilders. The iShares Dow Jones Home Construction ETF (ITB) last week hit a 21-month high that exactly coincided with a climactic high in January, 2018. The subsequent selling this week seemed to unfold like clockwork. The selling was particularly notable given the S&P 500 (SPY) … Read more
AT40 = 59.4% of stocks are trading above their respective 40-day moving averages (DMAs)AT200 = 53.1% of stocks are trading above their respective 200DMAsVIX = 12.7Short-term Trading Call: neutral (see below) Stock Market Commentary A Sufficient Resolution I still harbor lingering skepticism, but the S&P 500’s recovery from the last hiccup and its subsequent slow … Read more
AT40 = 39.0% of stocks are trading above their respective 40-day moving averages (DMAs) (intraday low at 34.5%)AT200 = 45.3% of stocks are trading above their respective 200DMAsVIX = 20.6Short-term Trading Call: cautiously bearish (caveats below) Stock Market Commentary A Broad-Based Exit The selling today was so broad that even Invesco S&P 500 Low Volatility … Read more
AT40 = 51.3% of stocks are trading above their respective 40-day moving averages (DMAs)AT200 = 48.9% of stocks are trading above their respective 200DMAsVIX = 18.6Short-term Trading Call: cautiously bearish Stock Market Commentary The Big Question: Another Q4 Sell-Off? “Last year can’t happen because of last year” Tim Seymour, CNBC’s Fast Money, October 1, 2019 … Read more