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: Some stocks benefit greatly from an oversold bounce. Some stocks continue to dampen the mood. Today, retailers bruised an otherwise impressive continuation of the oversold bounce in the stock market. With retailers weighing down the market with poor implications for the macro environment, caution remains warranted. Still, the rebounds in the most … Read more
Stock Market Commentary: After much resistance to Fed hawkishness, the U.S. stock market gave way to fresh bearishness. The major indices dropped into new depths of the bear den. The stocks below are snapshots of the latest deterioration in the price action and decline in the technical health underlying the stock market. The ARK funds … 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 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