ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The Market Breadth Summary Stock Market Commentary The dynamics of this stock market are simple. AI infrastructure stocks are soaring well ahead of the competition and their peers. The rest of the market is getting left behind. Market breadth is going nowhere and remains in bearish territory, but the indices are being powered higher by … Read more
Earlier this month I launched PAIROS, the Panic AI Research On Software, to provide a structured approaching for assessing the (contrarian) investment thesis in software companies heavily impacted by the SaaSpocalypse. I ran a real-time test of PAIROS on Anthropic’s Mythos and developed a rationale for buying into Palo Alto Networks (PANW). So far, so … Read more
The Market Breadth Summary Stock Market Commentary A week ago, I made the case that a bottom was finally forming after five weeks of selling. The ceasefire announcement that was supposed to reopen the Strait of Hormuz let buyers run free and confirm that bottom. Wednesday’s resulting gap up created post-oversold trading conditions that tell … Read more
Introduction I have been working on a framework to make sense of AI’s impact on the enterprise software industry. The ongoing SaaSpocalypse caused by an AI Panic has given this research extra urgency because I suspect the sell-off has created contrarian opportunities to buy impacted stocks for significant upside gains in coming years. I created … Read more
On March 11th after the market close, Atlassian Corporation (TEAM) announced a 10% layoff. The company reiterated guidance to assure investors that the corporate actions do not reflect problems with the business. In his letter to employees explaining the layoffs, CEO and Co-Founder Mike Cannon-Brookes also reminded the company of its strong momentum from the … Read more