ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
This post is essentially an addendum to “Resilience Cracks: Market’s Bearish Divergence Ends In Topping Pattern.” Financials in the form of the SPDRS Select Sector Financial ETF (XLF) finally achieved an all-time high last month. XLF jumped on December 12, 2019 and trickled higher to the all-time high from there. Since that point, XLF has … Read more
AT40 = 52.2% of stocks are trading above their respective 40-day moving averages (DMAs)AT200 = 58.2% of stocks are trading above their respective 200DMAs VIX = 14.6Short-term Trading Call: neutral Stock Market Commentary The stock market finally pushed into overbought territory on Thursday, January 16th. The breakout quickly turned into a bust with AT40 (T2108), … 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
The U.S. Senate approved the U.S.-Mexico-Canada Agreement (USMCA) trade agreement on Thursday, January 16th. That timing may mark a major milestone and turning point for the Mexican peso against the U.S. dollar (USD/MXN). The following day, USD/MXN sliced through the low of 2019 and hit a 17-month low. I have been bullish on the Mexican … Read more