ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Housing Market Intro and Summary What happened in the housing market for July, 2025? The housing data looked as bad as ever, but the stock market has finally responded favorably to the stocks of home builders. This forward-looking display of “green shoots” forms the basis of a “bearish to bullish reversal.” The catalyst for this … Read more
Stock Market Commentary A bearish engulfing top pattern in the S&P 500 now seems like a distant memory. Yet, the melt-up in the stock market faces a new test. Just as the stock market enters its most dangerous months of the year in terms of drawdowns, a bearish divergence has emerged with market breadth. What … Read more
Housing Market Intro and Summary What happened in the housing market in October, 2024? A reckoning that I anticipated finally came in the form of sharply lower prices for the shares of home builders. After resisting rising mortgage rates for a month, the stock market lost its appetite. Earnings have brought a dose of reality … Read more
Housing Market Intro and Summary What happened in the housing market in August, 2024? Financial markets quickly threw out a major downgrade from Citigroup for the housing sector. Hopes for rate cuts from the Federal Reserve continued to impact both the data and stock prices. While the on-going decline in mortgage rates has failed to … Read more
Question. When an analyst lowers the price target on a stock to a level still substantially higher than the current price, what do you expect to happen? What if that price target comes with a downgrade from buy to neutral? If you answered lower, you win a prize… a discounted price on homebuilder stocks. A … Read more