ONE-TWENTY TWO: Trading Financial Markets
Since the year 2000, delivering a different narrative for students and fans of financial markets: stocks, options, currencies, Bitcoin, and 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 A stock market melt-up is in full effect. Investopedia defines a melt-up as “…a sustained and often unexpected improvement in the investment performance of an asset or asset class, driven partly by a stampede of investors who don’t want to miss out on its rise, rather than by fundamental improvements in the economy.” … Read more
The Follow-Through Intro The biggest follow-through trades from “Key Stock Sectors Missed A Breakout In Market Breadth – Above the 40” (June 11, 2021) erupted in the housing-related plays. Big cap tech looks more ready than ever to reestablish its leadership position over the market. The stock market had an initial negative reaction to the … Read more
Stock Market Commentary The stock market struggled for months against the downtrend line on market breadth. The struggle ended last week. My favorite technical indicator of breadth AT40 (T2108) broke out and closed the week at 61.9%. Now I start a countdown toward a test of the overbought threshold. However, several sectors dampened the week’s … Read more
Stock Market Commentary Last week featured yet another episode of momentary panic proceeded by a virtual “all clear” signal. In the middle of the week, the S&P 500 (SPY) broke down just as the stock market hit extremes. Subsequently, buyers stepped into the breach. As a result, the very next day, the stock market rebounded … Read more
Stock Market Commentary Last week featured an intense barrage of earnings reports. The collective response on the major indices was a major yawn. The S&P 500 finished flat for the week. The NASDAQ and the iShares Trust Russell 2000 Index ETF both softened by 0.4%. Financials were a notable exception as the Financial Select Sector … Read more
Stock Market Commentary The stock market continued its streak of trickiness. Buyers and sellers played a fierce bear-bull battle starting with one of the biggest fake-out one-day rallies since last September 2nd’s near parabolic run-up. Fresh money flowed into funds to start the month of March to for gains of 2.4% on the S&P 500 … Read more
Stock Market Commentary Sellers beat a hasty retreat from the stock market as another bearish signal enjoyed a fleeting existence. The last bearish period lasted about three days. The previous bearish period barely survived a day. The stock market’s ability to quickly wipe away bearish signals is impressive. The buying force over the last week … Read more
Stock Market Commentary After the recent bearish divergence resolved to the downside, the stock market rebounded sharply. Volatility was over-extended and my favorite breadth indicator plunged at an extreme rate. In that context, the stock market’s subsequent bounce made sense as relief from extreme conditions. The sellers followed through on the resolution of bearish divergence … Read more
Stock Market Commentary The Presidential inauguration is a hallowed American tradition. The stock market celebrated the incoming Biden and Harris administration with new all-time highs on good trading volume. The start of a new American administration is as good a time as any to back down from my recent short-term bearish call. While this overbought … Read more