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 strong start to September which characterized the persistent complacency in the stock market soon gave way to the kind of selling that characterizes one of the most dangerous months of the year. September came to a bearish end with a 4.8% loss on the month for the S&P 500. The index … Read more
Stock Market Commentary The S&P 500 (SPY) is a key driver of the stock market’s most predictable pattern. The index’s relentless rise this year has held the majority of the trading action above the 20-day moving average (DMA) (the dotted line in the chart below). Brief dips below the 20DMA set up tests of the … Read more
The Follow-Through: Churning While the S&P 500 (SPY) cruised higher all week, much of the rest of the market resigned to churning. The dichotomy of a market rebound versus the wounds left to heal continued to play out. Many of the follow-through trades for this week churned with the rest of the stock market. See … Read more
Stock Market Commentary Even the Federal Reserve must sit back and marvel as the S&P 500 (SPY) refuses to rest for long. Post-Fed handwringing sent the stock market into a period of doubt over previous assumptions of inflation fears. The previous week even ended with oversold conditions looming. However, as is the case with so … Read more
Stock Market Commentary Last week delivered another key test of support levels for the stock market. The major indices passed their individual tests, but the week ended with no resolution. Bulls and bears are battling between short-term ranges that are chopping and churning traders. With the stock market resigned to this kind of chop, patient … Read more