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 Last week was full of dramatic price swings. Traders reacted in extreme ways to key earnings results. The wild behavior cascaded out to related stocks. Some of the collateral damage in the blast radius likely came from portfolio managers scrambling to rebalance holdings. I expect this kind of action to continue through … Read more
Stock Market Commentary: The churn zones continued to hold sway over the market last week. Buyers effectively fought off a descent into a bear market by rallying the major indices up and out of the churn zone. Still, the narrative of churn stands thanks to a refresh of fear from Facebook’s post-earnings blow-up. Meta Platforms, … Read more
Stock Market Commentary: I started last week’s trading with a call for discipline over precision. That post turned out to be timely as the bears and bulls took the stock market on a wild ride through the Fed’s latest monetary policy decision (more on that in a future post). The indices plunged deeply on Monday … Read more
Stock Market Commentary Investor psychology took an important hit this week. During the Goldman Sachs (GS) Q&A period for the Q4 2021 earnings conference call, Chairman and CEO David Solomon dropped an inflation bomb. Solomon claimed that “there is real wage inflation everywhere in the economy, everywhere” (from the Seeking Alpha transcript). Solomon responded to … Read more
Stock Market Commentary My bullishness waned with last week’s manic trading action. I called the resulting patterns choppiness toppiness to reflect a biding sense that the market is churning out some kind of lasting top. Still, under the surface of the churn is a fresh divergence. The stock market is full of digital lows and … Read more