ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
AT40 = 16.3% of stocks are trading above their respective 40-day moving averages (DMAs) – 3rd day of oversold period following 4-day oversold period AT200 = 33.6% of stocks are trading above their respective 200DMAs VIX = 19.9 Short-term Trading Call: bullish Commentary Friday was a day with a head-spinning mix of reassuring and ominous … Read more
AT40 = 52.7% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 56.7% of stocks are trading above their respective 200DMAs VIX = 11.8 Short-term Trading Call: neutral Commentary The stock market is not quite out the (short-term) woods yet. Last Wednesday I pointed out why the latest bearish divergence forced … Read more
AT40 = 51.6% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 55.3% of stocks are trading above their respective 200DMAs VIX = 13.2 Short-term Trading Call: neutral Commentary The indicators barely changed from the last Above the 40 post, but the technical winds are likely changing yet again. A little … Read more
The National Association of Home Builders (NAHB) consistently complains about rising construction costs, so I have taken for granted that lumber prices remain an issue. Lumber futures actually peaked in mid-May after a tremendous 2018 breakout and run-up. The return back down was a lot faster than the ride up. Earlier this week, lumber futures … Read more
AT40 = 57.6% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = N/A% of stocks are trading above their respective 200DMAs VIX = 12.9 Short-term Trading Call: neutral Commentary I remain fascinated by the S&P 500’s increasing resilience to worsening macro-economic headlines. The apparent boredom with the headlines about trade wars, … Read more
AT40 = 48.3% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 50.4% of stocks are trading above their respective 200DMAs VIX = 17.9 Short-term Trading Call: bearish Commentary The trading action this week confirmed the bearish change in trading that occurred when AT40 (T2108), the percentage of stocks trading above … Read more
I had high hopes for Meritage Homes (MTH) before and after the company reported earnings last month. Home builders were leading the market into a big sell-off, and I expected MTH to set the record straight on the health of the housing market. The headline earnings were solid but not quite inspiring enough. The stock … Read more
AT40 = 12.5% of stocks are trading above their respective 40-day moving averages (DMAs) (day 1 of the second oversold period in 4 days) AT200 = 39.2% of stocks are trading above their respective 200DMAs (near 2-year low) VIX = 33.5 (range from 24.4 to 36.2) Short-term Trading Call: cautiously bullish (with oh so many … Read more
AT40 = 67.0% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 65.2% of stocks are trading above their respective 200DMAs (a TEN MONTH HIGH) VIX = 11.1 Short-term Trading Call: bullish Commentary Once again the stock market was only able to maintain overbought trading conditions for 1 day. At the … Read more
The Canadian dollar (FXC) is at an interesting juncture. Strong economic data has strengthened the currency but the Bank of Canada (BoC) has applied brakes on currency’s rally. The Canadian dollar weakened in the wake of policy statements in October and December. The last word of 2017 went to the economic data as hot inflation … Read more