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 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
Stock Market Commentary After the stock market rally suffered strike one and strike two, Wednesday’s sudden pullback had all the signatures of a third strike to start the end of the extended overbought rally. Sellers surged in the final 90 minutes of trading that day. However, they failed to sustain the stampede for the exits. … Read more
Stock Market Commentary For traders like myself who follow market cycles from extreme fear to extreme euphoria, last week’s trading action was astonishing. The stock market was already well overbought and stretched going into Wednesday’s Federal Reserve meeting. Yet, buyers STILL managed to go into extreme stretch mode. The Federal Reserve essentially declared the death … Read more
Stock Market Commentary Despite strike one and strike two against the market rally, buyers are stretching out this overbought period. The jobs report for November seemed to further support the case of an economy that survived the Fed’s rate hike cycle even as the case recedes for near-term rate cuts. The stock market responded by … Read more
Stock Market Commentary Technical underpinnings are changing fast in the stock market. The first strike against the rally came in the form of initial struggles to break into overbought territory. A second strike has now emerged in the form of an appreciating Japanese yen (FXY). To the extent carry trades – borrowing cheap yen to … Read more