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: Last week delivered a series of confirmed breakouts that served to uphold bullish belief in the stock market. Even as the overall rally looks to continue, the market’s most troubled corners showed weakness at the end of the week. These holdouts failed to break through important resistance levels. Some of these growth … Read more
Stock Market Commentary: The stock market finished the week with confirmations of the bullish signals that were hard to believe. Accordingly, the follow-through buying served to uphold bullish belief despite the negative headwinds that scream with bearish overtones. Looking back, the current V-move upward looks swift. However, letting bullishness ride through this swing has taken … Read more
Stock Market Commentary: The stock market continued its quest to convince us that the world is getting or soon will get a lot better. Perhaps the market is somehow feeding off the definitive hawkishness from the Federal Reserve. Whatever the explanation, market breadth expanded to levels last seen 4 months ago. The rally demonstrates broadly … Read more
Stock Market Commentary: I stuck to my cautiously bullish short-term trading call in my last “Market Breadth” post. Signature stocks Apple and NVIDIA lead a relentless comeback that symbolizes a market that finally had nowhere to go but up. Buyers ignored a hawkish Federal Reserve and the escalation of violence from Russia’s invasion of the … Read more
Stock Market Commentary: I did not back my way into an explanation for Wednesday’s post-Fed rally in the stock market, and I will not do so to explain the rest of the market’s impressively relentless comeback. In fact, the rally makes little sense given the prevailing narrative of fears over higher rates – not to … Read more
Stock Market Commentary: I will not attempt to back my way into an explanation for today’s impressive rally in the stock market. Maybe the surge is another classic bear market relief rally. Maybe the relief fuel symbolizes a market finally ready to leave a bottom behind. Time will tell. What IS clear is that the … Read more
Stock Market Commentary I gave the summary for the week in my last “Market Breadth” post. I will just add here that the stock charts are full of images of a stock market running low on fuel. I tell just a small part of the narrative below. Stock Chart Reviews – Below the 50-day moving … Read more
Stock Market Commentary Russia’s invasion of Ukraine has created massive human misery and a historic press of global economic sanctions. With war comes scarcity and the allocation of resources to destroying the resources of others. Financial markets are scrambling to adjust to the new global wartime economy. These charts are just a snapshot of some … Read more
Stock Market Commentary Trading with on-going headline risk is difficult for bulls and bears. I find it useful to pick a narrative, pick an anchor, and stay as disciplined as possible. My foundation remains with the principles of trading contrary to extremes. Last week, the market tested the extremes of oversold trading conditions and survived … Read more
Stock Market Commentary I earlier wrote about a promising divergence between anxiety and breadth in the stock market. However, I cannot help rubbernecking the market’s crashes and accidents. They tell dramatic stories about the folly in price action that can come with easy monetary policy and free money. The market goes through cycles of excitement … Read more