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 stock market got a case of the uglies last week. The end of summer trading transitioned right into a swift drawdown for the stock market’s second of the three most dangerous months of the year. The fresh breakdowns in the major indices accompanied new lows for market breadth. Suddenly, what I … Read more
Stock Market Commentary Jackson Hole did not provide the market moving spark that I expected. Instead, soft economic news delivered the decisive interpretation of future monetary policy required to provide a fresh catalyst for stocks. The bullish spark caught me flat-footed as I was leaning into imminent oversold trading conditions. Fortunately, the sentiment shift was … Read more
Introduction I recorded a quick video to summarize my thoughts on today’s flip from bearish to bullish sentiment thanks to a bad news is good news kind of day. You can watch the video or read the transcript below curated, corrected, and organized by ChatGPT4 and then edited further by me. I am using this … Read more
Stock Market Commentary Stocks stumbled their way through a week fraught with hopes and fears for Fed Chair Jerome Powell’s speech at Jackson Hole. With looming oversold conditions, the most significant technical event occurred with a bearish engulfing right under important resistance levels for both the S&P 500 and the NASDAQ. The relief buying that … Read more
Bearish Engulfing the Major Indices The stock market took a decidedly bearish turn right at the edge of Jackson Hole. In particular, the NASDAQ (COMPQ) printed a bearish engulfing pattern right at resistance from its 50-day moving average (DMA) (the red line in the chart below) and its 20DMA (the dotted line). The S&P 500 … Read more