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 I hate to be one of THOSE bears, but this current wild stock market has turned me into the classic broken record of bearishness. Last week’s red flags consisted of mind-boggling price changes in certain stocks both up and down. Stocks should not move in big chunks at a time, sometimes for … Read more
Stock Market Commentary Bring on the bears…The process terminating a historically extended overbought period started with the first trading day of the year. While the S&P 500 recovered from the year’s initial fit of selling, small caps did not. The sagging fortunes of small caps have now returned the related ETF to bear market territory. … Read more
Stock Market Commentary Exactly two weeks ago, the stock market fell out of bed. I called the abrupt move the rally’s third strike. However, buyers jumped right back into the fray and overcame that third strike with a rally right to the second to last trading day of the year. So far, the new year … Read more
Stock Market Commentary Technical underpinnings are changing fast in the stock market. The first strike against the rally came in the form of initial struggles to break into overbought territory. A second strike has now emerged in the form of an appreciating Japanese yen (FXY). To the extent carry trades – borrowing cheap yen to … Read more
Stock Market Commentary Stocks stumbled their way through a week fraught with hopes and fears for Fed Chair Jerome Powell’s speech at Jackson Hole. With looming oversold conditions, the most significant technical event occurred with a bearish engulfing right under important resistance levels for both the S&P 500 and the NASDAQ. The relief buying that … Read more