ONE-TWENTY TWO: Trading Financial Markets
A different narrative for students and fans of financial markets: stocks, options, currencies, housing, Bitcoin, and more…
The grinding bear market in financial markets has quickly created what I am calling “A Culture of Collapse.” The collapse is on vivid display in the stocks of home builders and other related housing and construction stocks. I cataloged the collapse in housing-related stocks that took on dramatic form two days ago. The iShares Dow … Read more
It was fun while it lasted. I first made the case for buying shares in Peloton Interactive (PTON) in the wake of a flap over a strange commercial for the exercise bike and service. The stock rallied a bit from there, but a well-timed short-seller attack stopped the rebound cold in its tracks. I bought … Read more
AT40 = 45.5% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 55.3% of stocks are trading above their respective 200DMAs VIX = 18.2Short-term Trading Call: cautiously bearish Stock Market Commentary I am so accustomed to the stock market’s resilience that I am already looking ahead to the rebound scenarios from … Read more
In recent days, market pundits have excitedly talked about the prospects of the Federal Reserve getting so dovish that it would be willing to make a bold statement with a rate cut of 50 basis points for the July 31st announcement on monetary policy. Such a move would be quite dramatic given the Fed has … Read more
Google Trends continues to serve as a relatively good guide for identifying buy and sell points in Bitcoin (BTC-USD). As the latest example, I used Google Trends to decide to take profits into what looked like over-extended price action on May 13th. The next day, Google search interest peaked. As a reminder, an extreme in … Read more
AT40 = 63.0% of stocks are trading above their respective 40-day moving averages (DMAs)AT200 = 41.8% of stocks are trading above their respective 200DMAsVIX = 14.3 (10.7% drop)Short-term Trading Call: bearish Stock Market Commentary The stock market’s scramble for support worked bigtime today. In my last Above the 40 post, I described the dilemma facing … Read more
AT40 = 25.5% of stocks are trading above their respective 40-day moving averages (DMAs)AT200 = 23.4% of stocks are trading above their respective 200DMAs (just off a 32-month low)VIX = 23.2 (as high as 24.7)Short-term Trading Call: cautiously bullish CommentaryI am surprised the stock market has yet to close in oversold conditions. AT40 (T2108), the … Read more
AT40 = 34.2% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 31.5% of stocks are trading above their respective 200DMAs VIX = 18.1 Short-term Trading Call: neutral Commentary The countdown to “hedge fund d-day” is finally behind the market. via GIPHY So far, the results are encouraging while the market … Read more
The big index news of last week was General Electric (GE) getting dumped by the Dow Jones Industrial Average (DJIA) index. The index managers at the Dow picked Walgreens Boots Alliance (WBA) to replace GE. Source: FreeStockCharts.com I wish the entire Dow index could follow after GE. Traders do not use the Dow for anything … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are … Read more