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: Sellers followed through with yesterday’s post-Fed selling. With losses across the board, market breadth dropped into oversold trading conditions. Yet, as I explained could be the case, the stock market looks uninteresting. Because the major indices are fresh off important breakdowns, substantial downside risk remains. Because the volatility index actually closed down … Read more
Stock Market Commentary: For those desperately looking for the “Fed pivot”, today’s Federal Reserve statement on monetary policy disappointed with a validation of the breakdown leading into the Fed meeting. Fed Chair Jerome Powell was almost unrelenting from start to finish with his efforts to stay on message: inflation remains too high, and the Fed … Read more
Stock Market Commentary: The week’s CPI shocker abruptly dissuaded the market from expecting good tidings from the upcoming meeting of the Federal Reserve. Selling followed through two out of the next three days as a nervous breakdown unfolded in the stock market. The S&P 500 (SPY) and the NASDAQ (COMPQ) even printed fresh 2-month closes … Read more
Stock Market Commentary: Pricing pressures are apparently NOT easing just yet. The August CPI report turned “peak Fed” into “fear the Fed” all over again. Instead of falling, core inflation (CPI excluding food and energy) increased a whopping 0.6% month-over-month. This surge pushed the 12-month core inflation rate up from July’s 5.9% to August’s 6.3%. … Read more
Stock Market Commentary: The confluence of market-moving news the last two days of the week resolved into a stock market looking incrementally healthier. A synchronized breakout above resistance at respective 50-day moving averages (DMAs) flipped the script on the negative sentiment that dominated trading going into last week. While weakness in the U.S. dollar from … Read more