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 trade on Generative AI took a surprising turn last week as investors and traders rushed to related names as if they offered safety from the banking Panic of 2023. Some stocks shot straight up for the week. The renewed interest surprised me because I just happened to write about this trade … Read more
Stock Market Commentary: Put all the headlines aside. Last week was all about the technicals. Picture-perfect support unfolded for the major indices and stopped bearish momentum dead in its tracks. Suddenly, the stock market went from the verge of confirming a short-term top from early February to looking ready to make a run at challenging … Read more
Stock Market Commentary: This stock market is one bullish bear market. A bear market perhaps cannot get more bullish than the current market. Since the October lows, the various indices have shown a general upside bias. As much time that I have spent the last several weeks looking for excuses to get bearish, the market … Read more
Stock Market Commentary: On cue, the stock market groaned at fresh signs of economic strength, this time from another strong jobs report. The recession Wall Street wants is on hold yet again. The bullish intent that charged out of the wake of the Federal Reserve’s last statement on monetary policy made a sharp u-turn. The … Read more
Stock Market Commentary: Mid-week, fresh drama in crypto looked like the next pivot point for the stock market. Instead, the bout of selling turned into a forgettable speedbump. Buyers returned with force in Bitcoin (BTC/USD), and the major stock indices recovered from major technical breakdowns and tests. In recent weeks, the stock market has bounced … Read more
Stock Market Commentary: The last bullish run in the stock market came to an abrupt end. The day started on a positive note, but trading went awry after a mix of relatively unsurprising economic news releases and Fedspeak. News that the Justice Department would announce an international enforcement action against a cryptocurrency entity seemed to … Read more
Stock Market Commentary: After celebrating slightly weak economic data last Friday, stock market buyers and bulls have trained their eyes on the December CPI (Consumer Price Index) report. The bullish trading action for the last two days suggests market participants are expecting weaker than expected inflation data. In turn, such a report would strengthen hopes … Read more
Stock Market Commentary: It took a mixed jobs report and soft economic data to spark late New Year’s cheer in the stock market. The December jobs report refreshed the message of a strong labor market whose unemployment rate has stayed between 3.5% and 3.7% the entire time the Federal Reserve has hiked interest rates. Yet, … Read more
Stock Market Commentary: Yesterday’s surge in the Japanese yen (FXY) may have exhausted enough sellers to clear the path for some holiday cheer in the stock market. Suddenly, the market seemed to transition from the heavy burdens of a stubbornly hawkish Fed to the alluring hopes from a lack of (scheduled) negative catalysts for the … Read more
Stock Market Commentary: The holiday-shortened week brought a reluctant return to overbought trading conditions. Buyers nudged the indices higher inch by inch after Monday’s slightly down open. The Fed-speak that returned the stock market to bearish trading conditions faded out of view. Looking ahead, the promise of seasonal strength once again beckons reluctant buyers. If … Read more