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 I have been making the case for months that the AI trade is topping. This last week’s price action added yet more confirmation. While the NASDAQ dropped 2% for the week, nine of the eleven S&P 500 sectors finished higher, led by healthcare, materials, and utilities. That … Read more
The Market Breadth Summary The Stock Market Summary Last week started with a major market tension: levitating major indices versus plunging market breadth. The week ended with little resolution as tech stocks, mostly AI-related, reaffirmed the bullish posture of the S&P 500 and the NASDAQ while bond yields maintained a persistent rally that imperils Friday’s … Read more
The Market Breadth Summary: Latest Warning The Stock Market Summary Rising oil prices dominated the trading backdrop last week. Soaring oil prices helped emphasize inflation fears and bolstered higher bond yields (rates). While the S&P 500 and the NASDAQ survived tests of critical support thanks in large part to strong rebounds in AI-related stocks, small … Read more
The Market Breadth Summary: AI Rebound The Stock Market Summary The stock market rapidly transitioned from an AI crash to all-time highs in less than one week. Strong earnings revived the AI trade, software joined the advance, and the major indices pushed back toward their all-time highs. Momentum faded in the middle of the week … Read more
The Market Breadth Summary: AI Crash The Stock Market Summary First, technology cracked and next the AI trade crashed. The crash is not obvious because the stock market absorbed the crash quickly and, perhaps most importantly, many AI trades are still up significantly for the year despite trading down 30%, 40%, 50% and more from … Read more