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 In announcing the official end of monetary tightening, Federal Reserve Chair Jerome Powell mentioned some form of the word “recalibration” nine times from his introductory statement to the Q&A portion of the press conference. Specifically, “….it’s a process of recalibrating our policy stance away from where we had it a year ago, … Read more
In this “special edition” post, I recorded my thoughts on the stock market in an 8-miunte video. The main headline is that an abrupt improvement in the technicals from a major upside reversal forced me to run from my short-term bearish trading call and settle into neutral. As has been the case all year, the … Read more
Stock Market Commentary The S&P 500 is down 4.1% month-to-date. This loss makes this month a below average September for a maximum drawdown and fulfills September’s reputation as one of the index’s three most dangerous months of the year. As I noted last week, August’s extreme drawdown significantly increased the risk of September being worse … Read more
Stock Market Commentary This year’s Jackson Hole confab hosted by the Kansas City Federal Reserve delivered for financial markets. In his prepared speech, Fed Chair Jerome Powell issued an historic and classic sound bite for all of the history of monetary policy (emphasis mine): “The time has come for policy to adjust. The direction of … Read more
Just over two months ago, I aggressively bought ahead of an official trigger of the 20% rule for buying iShares MSCI Brazil ETF (EWZ). At the time, I explained my decision with three key reasons: I was also well aware that buying early subjected me to additional risks for the trading rule. Thus, I insisted … Read more