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 leaned into a melt-up as a constant stream of IPOs signaled risk-on appetite even as a massive downward revisions in jobs in the 12 months through March, 2025 implied more than expected economic weakness ahead. Rate cuts beckon as a result of this broadening weakness, and Wall Street has … Read more
Stock Market Commentary In a flashback to August’s opening trading salvo, September trading started with a sharp pullback. The decline fit the standard theme of “professional” traders and investors returning from summer vacations to take profits from a market levitating on low volume vapors. However, sensing redux price action, the market’s persistent buyers jumped right … Read more
Stock Market Commentary The month of August featured three distinctly strong expansions of market breadth. The last expansion featured the largest single-day expansion I have ever seen. In between these episodes, the market showed signs of exhaustion. The latest exhaustion is centered on the AI trade. NVDA earnings slightly disappointed and included slowing revenue growth … Read more
Stock Market Commentary Inflation grabbed the headlines last week, but market breadth was just as important for the stock market. With financial markets initially feeling good about the CPI report, buyers rushed for laggard stocks and created a market breadth revival for two days. The abrupt sentiment shift nearly eliminated all my concerns about a … Read more
Stock Market Commentary Finally the bears break in on all the fun the bulls have had for months. The stock market got overwhelmed with a flood of bad news that was just too difficult to ignore or look through (for now). The July jobs report was not just weak but also it included a massive … Read more