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 The stock market gapped up and never looked back in the wake of the Presidential Inauguration. Subsequently, buyers produced mixed follow-through for two days. Big cap tech defied the narrative of a rotation into value and industrial names by delivering the most convincing follow-through. A third drop from overbought conditions in a … Read more
Analysts (metaphorically) took note of Facebook (FB) teetering on a key support at its 200-day moving average (DMA) and rushed to the rescue. Two analyst reports helped confirm support with a 3.9% gain following Friday’s 2.3% gain. Another analyst report after hours should keep the rocket fuel burning going into earnings next week. The Analysts … Read more
Stock Market Commentary A liquidity-driven bounce off support took a small breather last week. The major stock market indices ended the week with a small loss. On the way there, overbought trading conditions ended for a day. As the major indices languished, the stock market dipped in and out of overbought conditions on an intraday … Read more
Bollinger Bands (BBs) are a powerful trading tool. They define an expected range of volatility in a stock based on recent price action. When that volatility contracts, the Bollinger Bands squeeze into a narrow channel. The resolution of that squeeze – to the upside or downside – can create a powerful continuation of or change … Read more
Stock Market Commentary What a week to start the year’s trading. It started with a definitively bearish end to extended overbought conditions. Overbought conditions bullishly resumed in the middle of the week despite an insurrection in Washington D.C. The week ended with a confirmation of the freshly bullish sentiment in the market. The trading action … Read more