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 loving stocks is staring down its second major test just two weeks after its first major test. Like the first test, the latest test is happening in the wake of the stock market’s failure to break through the overbought threshold on market breadth. Unlike the first test, the important … Read more
Stock Market Commentary: The summer of loving stocks is facing its first real test. In the middle of the week, the rally finally failed at the threshold of overbought market breadth. The stock market closed the week with market breadth confirming the end of the primary rally and the start of an important test of … Read more
Stock Market Commentary: On a weekly basis, the stock market seems to flip its abiding theme. One week after I accused the stock market of sleepwalking, buyers roused the major indices out of their slumber with a new and sudden display of strength. A 13.9% post-earnings surge from Meta Platforms, Inc (META) seemed to set … Read more
Stock Market Commentary: I continue to underestimate just how much these bear market rallies price in misplaced optimism over monetary policy from the Fed. Although Chair Jerome Powell remained overall consistent with the Fed’s hawkish, inflation-fighting message, the stock market plunged after an initial post-release surge. Accordingly, the latest bear market breakthrough came to an … Read more
Stock Market Commentary: The recession that Wall Street wants remains elusive according to the August jobs report. The data show the labor participation rate increased with job growth and a minimal increase in the unemployment rate: a recipe for the (mythical?) economic soft landing. The reaction in the stock market reflected the duality in interpreting … Read more