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 bearish engulfing top pattern in the S&P 500 now seems like a distant memory. Yet, the melt-up in the stock market faces a new test. Just as the stock market enters its most dangerous months of the year in terms of drawdowns, a bearish divergence has emerged with market breadth. What … Read more
Stock Market Commentary The stock market transitioned from a nervous calm to a confident calm. The NASDAQ and S&P 500 hit fresh all-time highs faster than I could have expected during the depths of the tariff drama, trauma, and noise. Nvidia (NVDA) led the way with a mid-week breakout to all-time highs. The market’s confident calm … Read more
Stock Market Commentary In just three months, the stock market has transformed from fragile to fearless. Friday’s return to overbought territory, on the heels of another jobs report that beat “consensus expectations”, underlined the market’s fearless bullishness. The jobs report made imminent rate cuts even less likely. Along with that prospect, bond yields nudged higher … Read more
Stock Market Commentary Last week marked an important shift as the stock market experienced overdue relief. Most notably, there were no major headlines causing significant disruptions in financial markets. Instead, the market continued the theme of recovery from the previous week, driven by policymakers pivoting their messaging about the economic chaos triggered by policies and … Read more
Stock Market Commentary Overhead resistance once prevailed over expanding market breadth, particularly over the past two trading sessions. The dominant headline was Federal Reserve Chair Powell’s warning about the difficult scenario facing the Fed due to tariffs. I interpreted his message as an intention to avoid responding as long as possible. For a market pricing … Read more