ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Housing Market Intro and Summary The story of housing remained relatively steady for most of the year: low inventory, rising prices, strong demand, low interest rates, and the desire for more space, especially in the suburbs. In my last Housing Market Review, I explored the market as a nexus of economic recovery and inflation. In … Read more
Stock Market Commentary The rebound from oversold conditions leading into Christmas provided just enough fuel for a one day Santa Claus rally. After the week started with a rush for Santa, the excitement fizzled like kids opening their last Christmas gifts. Still, the rally was enough and ended 2021 on a strong note. The S&P … Read more
Stock Market Commentary It was a close call. The technical deterioration of the previous week put the Santa rally in peril. At the start of trading last week, the Grinch roasted Santa enough to ignite oversold trading conditions. Santa’s revenge came in the form of a sharp rebound out of the 1-day oversold period. Subsequently, … Read more
Stock Market Commentary According to Investopedia, the Santa Claus rally “describes a sustained increase in the stock market that occurs in the last week of December through the first two trading days in January.” With the legendary rally still a week away, the S&P 500 (SPY) finds itself priced exactly where it was at the end … Read more
Stock Market Commentary In last week’s decision on monetary policy, Federal Reserve Chair Jerome Powell directly and fully acknowledged inflationary pressures in the economy. Perhaps lost in the inflation buzz was Powell’s quick commentary on financial stability during the Q&A session: “…asset valuations are somewhat elevated, I would say.” Of course, various folks in the … Read more