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 Right after the stock market tempted me to flip from bearish to neutral, January’s CPI (consumer price index) turned brought the bears rushing back to the scene. Inflation’s fizzle turned to sizzle, and the technical picture of the stock market almost flipped on its head. The charts say it all – the … Read more
I have a good friend that comes up with interesting theories about relationships in the stock market. Recently, he claimed that “more often than not”, on a day where the big cap stocks gain and the iShares Russell 2000 ETF (IWM) does not gain, IWM will experience a daily gain on the next trading day. … Read more
Stock Market Commentary Instead of climbing a wall of worry, the market is climbing a wall of frustration (I stole that from a friend of mine). No matter what economic indicators bears stare at to declare impending doom, the jobs market just keeps coming in hot month-after-month. While a widening swath of stocks are breaking … Read more
Stock Market Commentary A bearish divergence is well underway in the stock market. While the S&P 500 and NASDAQ rally, a key bearish trading signal persists in market breadth. The previous week, market breadth created a strong bearish signal by slicing below the overbought threshold. This key bearish trading signal was reinforced by last week’s … 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