ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Bitcoin Uptrend Analysis The trend is a friend for Bitcoin (BTC/USD) again. All three of the major moving averages are pointing upward for Bitcoin. This synchronization of the 20-day moving average (DMA), 50DMA, and the 200DMA supports a buy-the-dip strategy after the big March breakout in the wake of the banking Panic of 2023. Assuming … Read more
Stock Market Commentary: The trade on Generative AI took a surprising turn last week as investors and traders rushed to related names as if they offered safety from the banking Panic of 2023. Some stocks shot straight up for the week. The renewed interest surprised me because I just happened to write about this trade … Read more
Stock Market Commentary: The stock market this month has teetered on a seesaw alternating from resistance to support. The rapid back and forth makes it too easy to overinterpret both ends of these swings. However, a slow and steady convergence of resistance and support levels portends a potential big move ahead. Active and high volume … Read more
Stock Market Commentary: Last week ended the overbought period with a relatively strong report on initial claims for unemployment. The stock market – still freshly stung with the memory of the previous week‘s exceptionally strong jobs report – sold off sharply in response to the good economic news. A stubbornly resilient labor market continues to … Read more
Stock Market Commentary: The stock market oozed with bullish intent as it pushed its way through the latest Federal Reserve statement on monetary policy. While Jerome Powell made sure to stick to the script and introduced no surprises to the market, he was surprisingly reluctant to underline the Fed’s hawkishness. The market made a mile … Read more
Stock Market Commentary: Mid-week, fresh drama in crypto looked like the next pivot point for the stock market. Instead, the bout of selling turned into a forgettable speedbump. Buyers returned with force in Bitcoin (BTC/USD), and the major stock indices recovered from major technical breakdowns and tests. In recent weeks, the stock market has bounced … Read more
Stock Market Commentary: After celebrating slightly weak economic data last Friday, stock market buyers and bulls have trained their eyes on the December CPI (Consumer Price Index) report. The bullish trading action for the last two days suggests market participants are expecting weaker than expected inflation data. In turn, such a report would strengthen hopes … Read more
Stock Market Commentary: Yesterday’s surge in the Japanese yen (FXY) may have exhausted enough sellers to clear the path for some holiday cheer in the stock market. Suddenly, the market seemed to transition from the heavy burdens of a stubbornly hawkish Fed to the alluring hopes from a lack of (scheduled) negative catalysts for the … Read more
Stock Market Commentary: September was somber. October so far is a sugar high in comparison. With the remaining pandemic era gains preserved for now, the major indices immediately face the challenge of downtrends in place since August’s peak. The conclusion of an extended (8 days long) oversold trading period means, according to history, that at … Read more
Stock Market Commentary: And then there was just one. The S&P 500 (SPY) is once again the lone index of three that still trades just outside the clutches of the bear. The signs were flashing red last week as the bear market looked like it warmed right back up. The technicals of market breadth combined … Read more