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 Inflation was the big story last week. I covered the details in “Bonds Try to Weigh on A Market Trying Harder to Look Past Stabilizing Inflation“. The stock market had a curiously mixed reaction that highlighted an on-going bearish divergence for the month of December. A market breadth breakdown contradicted impressive strength … Read more
Stock Market Commentary It probably seems odd using “turnaround” as a descriptor for December’s trading. After all, the S&P 500 and the NASDAQ continued their respective melt-up trading action. Yet, small caps diverged and trickled downward all week. So I am intrigued by a collection of stocks that are making and often completing turnarounds from … Read more
Stock Market Commentary Holiday trading last week was deceptively lazy. The indices did a lot of churning, yet the S&P 500 and the ETF of small caps each made all-time highs at some point. A good number of individual stocks developed and followed through on bullish setups. For example, all week long, new highs greatly … Read more
Stock Market Commentary Imagine that. Key support holds firm across the major indices. A telling post-election reversal turned into proof positive that unrelenting bulls remain all-in for the stock market. Not even a further escalation in World War 3 brought pause to the rebounds off support (Russia fired an intermediate-range ballistic missile into Ukraine and … Read more
Stock Market Commentary The stock market has a natural law of “physics.” Overly enthusiastic trading, whether up or down, eventually meets an opposite and sometimes equal force. This natural instability of extremes forms a basis of my market breadth trading rules. The enthusiastic post-election surge exhausted buyers enough to create a post-election reversal. Moreover, my … Read more