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 The Stock Market Summary I focused on two major developments during the past week of trading: the reemergence of oil and the skittishness of the AI trade. The resumption of the war against Iran nudged oil higher after multiple attacks against oil tankers had already brought an end to oil’s weeks-long … Read more
The Market Breadth Summary Small cap stocks led a market breadth breakout, then faded just short of overbought, leaving me encouraged by momentum but wary of a near-term pullback. The S&P 500 ground to fresh highs, while the NASDAQ lagged by stalling at prior peaks. A clean breakout still awaits for the NASDAQ. CES-driven leadership … Read more
Stock Market Commentary Inflation grabbed the headlines last week, but market breadth was just as important for the stock market. With financial markets initially feeling good about the CPI report, buyers rushed for laggard stocks and created a market breadth revival for two days. The abrupt sentiment shift nearly eliminated all my concerns about a … Read more
Stock Market Commentary I earlier wrote about a forlorn stock market writing a love note to the Federal Reserve. This love note comes in the form of a basket of sell-offs. The selling is so broad and so deep that traders could throw a dart and find descriptive stock charts. The examples below are some … Read more
Stock Market Commentary My bullishness waned with last week’s manic trading action. I called the resulting patterns choppiness toppiness to reflect a biding sense that the market is churning out some kind of lasting top. Still, under the surface of the churn is a fresh divergence. The stock market is full of digital lows and … Read more