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 Last week was action-packed. Earnings dominated my focus, and the resulting trading action confirmed why it was important to ignore the bearish signals from market breadth last week. The market is as bullish as ever this year at the index level, even though market breadth still stains the … Read more
The Market Breadth Summary Stock Market Commentary After five straight down weeks, the stock market finally enjoyed an up week. The move looked strong enough to flash key signs of a bottom in the making. The last day of trading for the holiday shortened week was particularly telling. The stock market gapped lower at the … Read more
The Market Breadth Summary Stock Market Commentary Chaotic trading continued last week. Some segments of the market are doing extremely poorly and other segments of the market that are doing extremely well. A market rotation has turned into stark divergence hidden by major indices which are mainly thrashing about. I see three major signals. One, … Read more
The Market Breadth Summary Stock Market Commentary I am risk off in the coming week because market breadth failed twice at the overbought level. One failure is enough to make me cautious, but two tells me that the market is fighting too hard just to go higher. Moreover, earnings season is in full swing. For … Read more
Stock Market Commentary The stock market started the week in familiar melt-up mode, supported by a (temporary) thaw in the economic war between the U.S. and China. Optimism persisted until the Federal Reserve weighed in with its latest announcement on monetary policy, when Chair Jerome Powell balked at the idea of a December rate cut. … Read more