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 expected first of the month buying only showed up in the last hour of trading, but it still made an important impression. The recovery created a picture perfect bounce off the oversold threshold. At the same time the S&P 500 perfectly tapped its May, 2021 closing low before recovering. The volatility … Read more
Stock Market Commentary: Trading extremes led to a snapback rally as expected. However, the rally was short-lived as bear market action quickly resumed. The stock market looks like it is on the way to oversold trading conditions as March closing lows failed to hold as support. Fear is palpable as traders and investors scramble to … Read more
Stock Market Commentary: The runway for (short-term) bearishness has greatly shortened. The classic safety trades sprung to life to add exclamation points to the broadening sell-off. After over 6 weeks of near relentless losses, the Japanese yen (FXY) caught a strong bid. Inflation fears returned to the background as traders eased into Treasury bonds (per … Read more
Stock Market Commentary: The stock market chopped into bearish conditions in the previous week. My reasons for bearishness were not obvious, but, as is typical, market breadth dynamics led my thinking. Last week, the stock market flagged very clear signs of bearishness. Resistance to the Fed in the form of disbelief in the process of … Read more
Stock Market Commentary: As expected, the S&P 500 took the spotlight in the latest week of trading. Earlier I noted that the index was a breakdown away from bearish trading conditions. The S&P 500 obliged and dropped under its 50-day moving average (DMA) (the red line below). However, the bearish call is challenging because sellers … Read more