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: As expected, the S&P 500 took the spotlight in the latest week of trading. Earlier I noted that the index was a breakdown away from bearish trading conditions. The S&P 500 obliged and dropped under its 50-day moving average (DMA) (the red line below). However, the bearish call is challenging because sellers … Read more
In a blunt and direct discussion, Bank of Canada (BoC) Governor Tiff Macklem made a compelling case for fighting inflation by declaring that “the economy has entered this period of excess demand with considerable momentum and high inflation, and we are committed to getting inflation back to target.” To do so, the BoC hiked its … Read more
Stock Market Commentary: The S&P 500 takes the spotlight going into trading this week. The index is a breakdown away from officially ushering in a return to bearish trading conditions. Trading last week completed the stock market’s return to the reality of macro conditions. Fed-speak dominated the air as sellers followed through on topping out … Read more
In “Jim Bianco: “Arguably One of the Worst Forecasts In Fed History’” I wrote about the prospects of trading soaring interest rates with the iShares 20+ Year Treasury Bond ETF (TLT). I have recently and belatedly faded rallies in TLT by buying puts and taking small profits on the way back down. (TLT goes up when … Read more
Stock Market Commentary: How many times and how many ways does the Fed need to communicate its seriousness about normalizing monetary policy and fighting inflation? Apparently, the answer for Fed-speak is many times and a LOT of ways. Fed Governor Lael Brainard delivered one way with a speech on Tuesday titled “Variation in the Inflation … Read more