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 A week ago, I concluded that the stock market had reached “oversold enough” trading conditions. Last week confirmed an oversold low as market breadth rapidly broadened and supported an all-time high redux for the S&P 500. Yet, this revival comes with important caveats. Uncertainty looms over the Federal Reserve’s next moves even … Read more
Stock Market Commentary The week opened with market breadth dropping to within five percentage points of the oversold threshold. This was the closest encounter with oversold since late October, 2023. The stock market never looked back from there. A favorable mid-week inflation report helped propel the stock market with the assistance of declining long-term bond … Read more
Stock Market Commentary Writing about financial markets always feels surreal when tragedy and disaster dominate the news headlines. My cognitive dissonance gets particularly poignant when the stock market does not reflect the scale and scope of events. As massive fires rage in Los Angeles causing to-date $135B to $150B in economic losses and loss of … Read more
Stock Market Commentary Fades were on display, especially on Thursday, as the stock market showed signs of exhaustion. Bad news in and for the semiconductor industry seemed to motivate sellers. For example, earnings for Microsoft (MSFT) and Meta Platforms (META) seemed to release some steam on hyped expectations for the AI chips both companies will … Read more
Stock Market Commentary Bearish engulfing patterns flag potential tops at the end of uptrends. They represent the potential exhaustion of buying power as price first opens above the previous day’s high and then closes below the previous day’s close. Thus, the latest round of bearish engulfing patterns in major indices and major stocks should be … Read more