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 Despite strike one and strike two against the market rally, buyers are stretching out this overbought period. The jobs report for November seemed to further support the case of an economy that survived the Fed’s rate hike cycle even as the case recedes for near-term rate cuts. The stock market responded by … Read more
Stock Market Commentary Market breadth tentatively tested the overbought threshold before buyers got a hit and made a dash into overbought conditions. The previous tentativeness created a first strike against the market rally. The dash into overbought conditions refreshed a broad bullishness in the stock market. Long-term interest rates were once again the center of … Read more
Stock Market Commentary The stock market delivered a gift on Friday as I scrambled to de-risk following the Bank of Japan’s drama on monetary policy. I braced for selling into bearish pressure and instead was pleasantly greeted by a broad push higher for stocks from the open. After the dust settled on the day, I … Read more
Stock Market Commentary On Thursday, good economic news scared Wall Street yet again. Initial jobless claims came in well below “expectations” and set off a cascade of reactions. Interest rates shot up and the stock market dropped down. The stubborn strength of the labor market allows the Federal Reserve to stay hawkish and keep its … Read more
I earlier claimed that market breadth would only push higher with the participation of small cap stocks. Well the big moment of truth already arrived as the iShares Russell 2000 ETF (IWM) punched through its bear market line for the third time in 11 months. With the S&P 500 (SPY) and the NASDAQ (COMPQ) relentlessly … Read more