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 Stock Market Commentary Chaotic trading continued last week. Some segments of the market are doing extremely poorly and other segments of the market that are doing extremely well. A market rotation has turned into stark divergence hidden by major indices which are mainly thrashing about. I see three major signals. One, … Read more
The Market Breadth Summary Stock Market Commentary I switched to “risk off” and cautiously bearish in late January. The subsequent bearish trading action unfolded mainly “under the hood” of the major indices from late January through the beginning of last week, before accelerated selling emerged. A major market rotation away from tech stocks started before … Read more
Stock Market Analysis Summary The market initially welcomed the Fed’s rate cut, but rising long-term yields recreated the same headwinds seen after the October rate cut. A tired AI trade emerged as Oracle, Broadcom, NVIDIA, and semiconductors sold off sharply, pressuring market breadth. Major indices showed signs of topping despite prior strength, especially the NASDAQ … Read more
Stock Market Analysis Summary Stock market indices, including the S&P 500, NASDAQ, and Russell 2000, staged sharp recoveries, breaking key resistance levels as holiday spirits fueled by revived rate cut hopes apparently helped to heal a cracked stock market. Market breadth expanded sharply, with the percentage of stocks trading above their 50-day moving averages (AT50) … Read more
Stock Market Analysis Summary Market liquidity fears intensified across equities and crypto as market breadth continued to deteriorate. The major stock market indices confirmed bearish technical breakdowns. Major AI and tech stocks confirmed weakening momentum. The week ended with a relief rally after rate-cut expectations surged with Fed Governor Williams teasing a possible December easing. … Read more