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 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 After months of bearish market breadth, the downtrend ended with a surprising bullish divergence. The stock market quickly transitioned from a bearish to bullish divergence thanks to a rotation away from high tech and AI-related stocks and into small caps, consumer-facing stocks, and others. Micron Technology’s earnings … Read more
The Market Breadth Summary The Stock Market Indices Last week, retail and software stocks ignited, and the usual AI-related suspects also participated in the rally. Yet the advance unfolded beneath persistently weak market breadth, leaving a notable disconnect between price action and participation. The software rally is particularly interesting and gratifying to me given I … Read more