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 Big news: the oversold period is officially OVER. This tariff tainted oversold period was lasted a historical 12 trading days. Several catalysts emerged during and after market hours to support a narrative of a sustained bottom, including: While the length of the oversold period confirms bear market trading, these developments suggest the … Read more
Stock Market Commentary The trading week started with a powerful jolt to the market. The major catalyst was a rumor that President Trump was considering a 90-day delay on tariffs, triggering a nearly 30-minute, $2.5 trillion rally. While ultimately unfounded, the rumor represented the kind of response markets expect: when financial markets panic, policy-makers panic. … Read more
Stock Market Commentary The stock market suffered experienced a jarring selloff during the announcement of reciprocal tariffs from President Trump, a move that, despite ample telegraphing, shocked both investors and global trade partners. The Futures dropped sharply, with even oil down 2.4% and the S&P 500 plunging as much as 3% after-hours. This tariff crash … Read more
Stock Market Commentary Investopedia defines the Santa Rally very precisely: “A Santa Claus rally refers to the sustained increases found in the stock market during the last five trading days of December through the first two trading days of January.” Based on this definition, Santa is failing…and just as the stock market risks a January … 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: A little over a month ago, the prospects of a bottom for this bear market got me a little more interested in individual stocks. Unfortunately, the bear market rubble expanded shortly after that. Amid the rubble are crushed gems and false hopes. These stock charts follow up on my initial reads and … Read more
Stock Market Commentary: With the prospects of a bottom for this bear market, I am getting a little more interested in individual stock narratives. The bear market rubble is extensive. The gems are dispersed across a wide area. These stock charts provide one framework for sifting through the trash and the opportunity. {note: in this … Read more
Stock Market Commentary: Inflation is everywhere in the global economy, and inflation will hang around for some time to come. The inflation problem is so bad that the Federal Reserve does not think inflation will return to its 2% target for another three years. While economists and pundits debate about how long inflation will last, … Read more
Stock Market Commentary A new COVID-19 variant created a new normal for financial markets. The following stock charts provide snapshots of how the market reacted to this new reality. Pandemic-sensitive stocks reacted sharply with a holiday-shortened trading session creating extra urgency for traders. Some of these quick trigger moves should reverse at least a bit … Read more
The Follow-Through: Strong Start for Stocks The month of September enjoyed a strong start as last week’s fairy dust from J-Pow continued to work its magic. Short-term market breadth with AT50, the percentage of stocks trading above their 50-day moving averages (DMAs), also continuing higher while leaving behind the longer-term breadth indicator in AT200, the … Read more