ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
AT40 = 2.5% of stocks are trading above their respective 40-day moving averages (DMAs) (20th oversold day)AT200 = 3.7% of stocks are trading above their respective 200DMAs (new low for the oversold period)VIX = 61.7Short-term Trading Call: bullish Stock Market Commentary The week did not start as I feared with a 5th circuit breaker shut-down … Read more
AT40 = 2.7% of stocks are trading above their respective 40-day moving averages (DMAs) (16th oversold day)AT200 = 4.0% of stocks are trading above their respective 200DMAsVIX = 76.5Short-term Trading Call: bullish Stock Market Commentary The week started with another stomach churning loss with the S&P 500 (SPY) losing 12.0%. It was a day where … Read more
This week’s market crash and subsequent sharp rebound revealed some key divergences among housing-related stocks. While one more home builder made it to my “do not touch” list, I see even more opportunities. Opportunities iShares Dow Jones US Home Construction Index Fund ETF (ITB) To start the week, the iShares Dow Jones US Home Construction … Read more
AT40 = 17.5% of stocks are trading above their respective 40-day moving averages (DMAs) (6th oversold day)AT200 = 32.9% of stocks are trading above their respective 200DMAsVIX = 32.0Short-term Trading Call: bullish Stock Market Commentary Was it a delayed response to the emergency rate cut from the Federal Reserve? Was it the big comeback by … Read more
AT40 = 11.4% of stocks are trading above their respective 40-day moving averages (DMAs)AT200 = 29.7% of stocks are trading above their respective 200DMAsVIX = 33.4Short-term Trading Call: bullish Stock Market Commentary On a day of incredible moves, I was most surprised that the stock market gave traders a chance to get in on the … Read more
AT40 = 53.3% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 58.8% of stocks are trading above their respective 200DMAs VIX = 13.7Short-term Trading Call: bearish Stock Market Commentary It just got tougher to stick to my recent bearish short-term trading call on the stock market. On Friday, news went … Read more
AT40 = 47.7% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 54.9% of stocks are trading above their respective 200DMAs VIX = 15.5Short-term Trading Call: bearish (from cautiously bearish) Stock Market Commentary The major indices managed to swing to all-time highs last week, but I still see signs of a … Read more
In recent weeks, the trade in the stocks of home builders provided timely reminders in the limited meaning in price action. The market periodically makes key “mistakes” that provide buying (or selling) opportunities. A Fresh Turning Point At the end of December, I described a “precarious divergence” between the stocks of home builders and the … Read more
AT40 = 69.6% of stocks are trading above their respective 40-day moving averages (DMAs) (ends 1-day overbought period) AT200 = 63.1% of stocks are trading above their respective 200DMAs VIX = 12.1Short-term Trading Call: neutral Stock Market Commentary The stock market finally pushed into overbought territory on Thursday. The breakout only lasted for a day. … Read more
AT40 = 71.2% of stocks are trading above their respective 40-day moving averages (DMAs) (overbought day #1) AT200 = 63.8% of stocks are trading above their respective 200DMAs (11-month high) VIX = 12.3Short-term Trading Call: neutral Stock Market Commentary Whispers of bearish divergences are finally over. I did not think overbought conditions would happen anytime … Read more