ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The Market Breadth Summary: AI Rebound The Stock Market Summary The stock market rapidly transitioned from an AI crash to all-time highs in less than one week. Strong earnings revived the AI trade, software joined the advance, and the major indices pushed back toward their all-time highs. Momentum faded in the middle of the week … Read more
The Market Breadth Summary: AI Crash The Stock Market Summary First, technology cracked and next the AI trade crashed. The crash is not obvious because the stock market absorbed the crash quickly and, perhaps most importantly, many AI trades are still up significantly for the year despite trading down 30%, 40%, 50% and more from … Read more
The Market Breadth Summary The Stock Market Summary Technology finally cracked under the weight of multiple pressure points. The biggest catalyst came from the AI spending race as companies such as Intel and Alphabet made it clear that they intend to continue increasing capital expenditures (capex) to remain competitive. Investors responded by focusing on the … Read more
The Market Breadth Summary The Stock Market Summary Tech weakness resurfaced last week as the AI trade continued to slowly roll over. A plunge in memory stocks featured prominently in this expanding weakness. After another deep gap down on Friday, buyers pulled off a major intraday reversal in memory stocks. However, this reversal stopped short … Read more
The Market Breadth Summary The Stock Market Summary I focused on two major developments during the past week of trading: the reemergence of oil and the skittishness of the AI trade. The resumption of the war against Iran nudged oil higher after multiple attacks against oil tankers had already brought an end to oil’s weeks-long … Read more