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 stock market rebounded out of oversold trading conditions but ended the week in ugly fashion. The combination produced fascinating snapshots of an ugly oversold bounce. Expensive growth stocks are rapidly falling out of favor while a convergence of negative headlines and uncertainties is painting plenty of ugly all over the stock … Read more
Stock Market Commentary A new COVID-19 variant created a new normal for financial markets. The following stock charts provide snapshots of how the market reacted to this new reality. Pandemic-sensitive stocks reacted sharply with a holiday-shortened trading session creating extra urgency for traders. Some of these quick trigger moves should reverse at least a bit … Read more
A major gauntlet dropped on the stock market. Apple (AAPL) soared as high as 3.2% but closed at just a 0.3% gain. AAPL broke out to a new all-time high last week in the middle of a swift 8-day run-up. In that time, AAPL bounced off support at its 50-day moving average (DMA) (the red … Read more
Stock Market Commentary The S&P 500 (SPY) bounced back from September’s woes for a 6.9% gain for the month of October. While the gain is extreme, I am even more interested in a different October extreme. Somehow, the index managed to skate through October without a notable drawdown. The maximum drawdown in October for the … Read more
Stock Market Commentary A week ago I pointed out the key signs suggesting the bear cycle was likely already ending. Last week, the S&P 500 (SPY) confirmed the end of the bear cycle with fresh all-time highs. Yet, consistent with this year’s theme, market breadth was left behind in catch-up mode. The momentum on both … Read more