ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
After the stock market finally tumbled from overbought conditions, I concluded that “…hope remains for bullish wishes, but all the warning signs are tilting comfort levels to the bears.” Bears are now making themselves feel right at home. On Tuesday, the S&P 500 lost 1.6% on higher than average volume, creating the kind of strong … Read more
After 46 days, the stock market finally dropped out of overbought conditions. On Friday, T2108, the percentage of stocks trading above their respective 40-day moving averages (DMAs), plunged below the 70% overbought threshold all the way to 62.5%. The stock market had a historic run. These past 46 trading days created the sixth longest overbought … Read more
Another week, another extension of a historic overbought period in the S&P 500. Based on the closing performance of the stock market’s major indices, you probably would not guess that one of the stock market’s largest companies (Cisco) lost 16% on the day. If there was a day for the market to have an excuse … Read more
The shorts in Cisco (CSCO) had it right after all…even if they were a bit early. Short interest in CSCO surged in late August close to 52-week highs. When I noticed this in mid-September, I made a somewhat complicated case for using this as a contrarian signal to go long the stock. CSCO trickled upward … Read more
I was about a month premature and about 19% in missed gains when I flagged the potential start of a parabolic move in silver. Or perhaps my definition of a parabolic move should have been more expansive. Either way, silver’s behavior over the past four trading days definitely has taken on the tipsy look of … Read more