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: Federal Reserve Chair Jerome Powell reminded the market one more time about the Fed’s determination to fight inflation with normalized monetary policy, and the market cared for the briefest of moments. After the anti-inflation dust settled, the major indices closed trading on a strong note. For example, the extended oversold period came … Read more
Stock Market Commentary: In the middle of last week, the S&P 500 was poised to hit bear market territory. Conditions were ripe with the stock market trading in deeply oversold territory and other indices toiling deeply in bear markets; a sharp rebound could happen at any time for any excuse. Both the S&P 500 and … Read more
Stock Market Commentary: The stock market finally dropped into deep oversold territory. Yet, on this third day of now extended oversold trading conditions, the S&P 500 (SPY) remains 98 points away from joining the NASDAQ and IWM in hitting a bear market (a 20% loss from its all-time high). The stock market is well on … Read more
Stock Market Commentary: The last “official” oversold period was 519 trading days ago. After 8 different intraday dips into and out of oversold territory, the stock market finally closed in oversold conditions. The signs of a bear market include the inability to stay out of oversold conditions. Today’s series of breakdowns combined with further deterioration … Read more
Stock Market Commentary: Despite recent bouts of trading in or like a bear market, market breadth has somehow managed to avoid closing in oversold conditions. In fact, the last “official” oversold period was 518 trading days ago. Yet, since the NASDAQ topped out in November, market breadth has dropped into and out of oversold on … Read more