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: The week’s trading started with intraday extremes to the downside and upside. With such wild swings at work, it is tempting to look backward and conclude that timing bottoms and tops are possible. This reach for precision distracts from the discipline required to navigate through the volatility. Relying on trading and investing … Read more
Stock Market Commentary: The stock market is expressing its disappointment with the Federal Reserve’s plans to tighten monetary policy. The Fed will have the backdrop of a sharp market sell-off when it meets this week to further execute on those plans. Like a forlorn partner, stocks sent a wistful love note to the Fed asking … Read more
Stock Market Commentary Investor psychology took another hit. A spirited relief rally turned into a dispiriting fade and reversal that had tinges of bear market action. The bear-like fade stretched the stock market closer to oversold trading conditions. All three major indices covered here are now setting multi-month lows. They are also very extended to … Read more
Stock Market Commentary The post-oversold divergence resolved to the downside. The downward pressure was evident across a wide swath of stocks, and big cap stocks were only strong enough to keep the S&P 500 (SPY) aloft for a day (at an all-time high). Now, the stock market looks toppy and heavy enough to dip back … Read more
Stock Market Commentary The stock market’s dip into oversold territory lasted the typical one day. The immediate wake was ugly. The follow-through revealed a new divergence. The resulting oversold bounce carved out the S&P 500 for special status as the winner of the divergence. The index hit an all-time high while the majority of the … Read more