ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The Market Breadth Summary The Stock Market Summary High tech stocks keep winning as AI leadership carries the sector and the headline indices, but market breadth keeps failing including a steep downtrend all month. In the prior week, the AI trade hit a short speed bump on AI safety concerns, but last week’s rally confirmed … Read more
Stock Market Commentary Investopedia defines the Santa Rally very precisely: “A Santa Claus rally refers to the sustained increases found in the stock market during the last five trading days of December through the first two trading days of January.” Based on this definition, Santa is failing…and just as the stock market risks a January … Read more
Stock Market Commentary The S&P 500 is down 4.1% month-to-date. This loss makes this month a below average September for a maximum drawdown and fulfills September’s reputation as one of the index’s three most dangerous months of the year. As I noted last week, August’s extreme drawdown significantly increased the risk of September being worse … Read more
Stock Market Commentary Last month, the stock market seemed to conclude that the threat of inflation had all but disappeared. Given the resulting celebration is one of the key drivers of the current extended overbought rally, today’s report on December’s CPI (Consumer Price Index) took on some significance. So when CPI missed “expectations” on the … Read more
Stock Market Commentary Signature stock market moments capped a remarkable year for the stock market. Two months of nearly relentless buying delivered a stunning 70% of the gains for the S&P 500 in 2023 after bulls exploded out of oversold trading conditions. Housing-related stocks soared even more as financial markets celebrate the presumed end of … Read more