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 summer of stocks looks like it is winding down as trading dynamics transition into the stock market’s most dangerous months. The complete reversal of July’s gains on the major indices represents the most ominous sign of the transition. Technology stocks in particular have flipped from rocketships to anchors weighing on the … Read more
Stock Market Commentary A week ago, buyers did their best to push against topping stock indices by restarting overbought conditions. That overbought period lasted just 3 days as a Fitch downgrade of U.S. Treasury debt freshly cooled the summer of loving stocks. The resulting selling confirmed topping conditions and greased the skids of the stock … Read more
Stock Market Commentary On Thursday, good economic news scared Wall Street yet again. Initial jobless claims came in well below “expectations” and set off a cascade of reactions. Interest rates shot up and the stock market dropped down. The stubborn strength of the labor market allows the Federal Reserve to stay hawkish and keep its … Read more
Stock Market Commentary: In the previous week, the stock market put on a display of strength ahead of the Federal Reserve’s May decision on monetary policy. That bravado was temporarily undermined by the final blow to First Republic Bank (FRC). After a one-day pause, presumably to contemplate the implications of the lack of a coherent … Read more
Stock Market Commentary: Put all the headlines aside. Last week was all about the technicals. Picture-perfect support unfolded for the major indices and stopped bearish momentum dead in its tracks. Suddenly, the stock market went from the verge of confirming a short-term top from early February to looking ready to make a run at challenging … Read more
Stock Market Commentary: This stock market is one bullish bear market. A bear market perhaps cannot get more bullish than the current market. Since the October lows, the various indices have shown a general upside bias. As much time that I have spent the last several weeks looking for excuses to get bearish, the market … Read more
Stock Market Commentary: The last bullish run in the stock market came to an abrupt end. The day started on a positive note, but trading went awry after a mix of relatively unsurprising economic news releases and Fedspeak. News that the Justice Department would announce an international enforcement action against a cryptocurrency entity seemed to … Read more
Stock Market Commentary: Last week was a bullish week for the stock market. Key breakouts on the major indices made a bullish case for stocks as buying strength conjured up overbought trading conditions. Yet another post-CPI celebration sealed the deal on a bullish convergence leading into the report on inflation. While it is tempting to … Read more
Stock Market Commentary: The stock market has swung so much between hope and despair that it looks like a dog chasing its tail down a hill. Accordingly, “The Market Breadth” has careened from soaring headlines to danger signs. A steep downtrend has remained in place since the last peak in August. Since that time 200-day … Read more
Stock Market Commentary: September was about as somber as it gets for financial markets. The S&P 500 lost 9.3% for the month which falls well below both the median and average (negative) historical performance for the index. With the June lows breached, the pandemic-era gains for the S&P 500 and the NASDAQ are now at … Read more