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 weakening overbought conditions finally gave way to a full breakdown. The abrupt end of the overbought period ushers in the bear. Ironically, trading started well with the S&P 500 (SPY) gapping slightly higher at the open. The selling pressure started after the open and did not relent until lunchtime on the … Read more
I have revised and implemented the Apple Trading Model (ATM) for several years. Last year was a banner year for buying and selling AAPL weekly call options in the ATM. The success makes sense given Apple (AAPL), along with so many other stocks, especially in tech, experienced incredible runs. The patterns for the Apple Trading … Read more
The stock market has enjoyed overbought trading conditions for the last 13 trading days and 14 of the last 15. I consider the stock market overbought when AT40 (T2108), the percentage of stocks trading above their respective 40-day moving averages (DMAs), trades above 70%. Overbought periods are times of mixed feelings. The stock market tends … Read more
Jumia Technologies (JMIA), the “Amazon of Africa”, is up 191% since closing with a 19% 1-day, post-earnings loss on November 10th. The stock is at a 19-month high and has once again become a strong momentum trade. However, buying at these heights inherently comes with a lot of risk. At some point, the stock will … Read more
Stock Market Statistics AT40 = 74.4% of stocks are trading above their respective 40-day moving averages (DMAs) (Day #1 overbought, 3 of last 4 days ooverbought) AT200 = 68.1%% of stocks are trading above their respective 200DMAs (near 3-year high and holding breakout above post financial crisis downtrend) VIX = 23.1 Short-term Trading Call: neutral … Read more