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 Imagine that. Key support holds firm across the major indices. A telling post-election reversal turned into proof positive that unrelenting bulls remain all-in for the stock market. Not even a further escalation in World War 3 brought pause to the rebounds off support (Russia fired an intermediate-range ballistic missile into Ukraine and … Read more
Stock Market Commentary The stock market has a natural law of “physics.” Overly enthusiastic trading, whether up or down, eventually meets an opposite and sometimes equal force. This natural instability of extremes forms a basis of my market breadth trading rules. The enthusiastic post-election surge exhausted buyers enough to create a post-election reversal. Moreover, my … Read more
Stock Market Commentary The Federal Reserve took the stage right after the U.S. presidential election. The Federal Reserve and Fed Chair Jerome Powell delivered as expected. The unrelenting bulls had no reason to stop the momentum from the post-election rally. Powell stuck to the Fed’s script and unrelenting bulls kept charging. The uneventful meeting had … Read more
Stock Market Commentary Bears still look ready to bow out, but they still have their paws firmly planted on high-tech stocks, especially semiconductors. The market rotations out of tech are nudging enough stocks higher, especially small caps, to rechallenge the threshold defining overbought conditions for market breadth. The stark divergence in stocks greatly reduces the … Read more
Stock Market Commentary The stock market’s bearish divergence is too strong to ignore. The S&P 500 and the NASDAQ achieved all-time highs while market breadth sunk again this week. Both short-term and long-term market breadth indicators are at key support levels. Even if market breadth somehow rebounds from current levels, I find myself getting yet … Read more