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’s dip into oversold territory lasted the typical one day. The immediate wake was ugly. The follow-through revealed a new divergence. The resulting oversold bounce carved out the S&P 500 for special status as the winner of the divergence. The index hit an all-time high while the majority of the … Read more
Stock Market Commentary The stock market rebounded out of oversold trading conditions but ended the week in ugly fashion. The combination produced fascinating snapshots of an ugly oversold bounce. Expensive growth stocks are rapidly falling out of favor while a convergence of negative headlines and uncertainties is painting plenty of ugly all over the stock … Read more
Stock Market Commentary Pressures continue to build in financial markets. Trading today opened like a typical relief bounce but ended with a thud. A breakdown in the S&P 500 flagged the seriousness of the selling. Fresh highs in a surging volatility index confirmed the magnitude of the pressures from a new fear and loathing for … Read more
Stock Market Commentary Federal Reserve Chairman Jay Powell, aka “J-Pow”, finally decided the time has come to drop the descriptor “transitory” from America’s current experience with inflation (see the 37:00 mark in the video below). J-Pow even acknowledged that “it is therefore appropriate…to consider wrapping up the taper of asset purchases…perhaps a few months sooner” … Read more
Stock Market Commentary A new COVID-19 variant created a new normal for financial markets. The following stock charts provide snapshots of how the market reacted to this new reality. Pandemic-sensitive stocks reacted sharply with a holiday-shortened trading session creating extra urgency for traders. Some of these quick trigger moves should reverse at least a bit … Read more