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 If you are asking where and when this AI-focused sell-off will end, you are asking the wrong question. Instead of asking for forecasts, the calm and disciplined traders and investors ask about managing risks while seeking opportunity. Thus, the main thing that changes within this framework is … Read more
The Market Breadth Summary: Punished The Stock Market Summary The Federal Reserve actually did it. America’s central bank channeled Kevin Warsh’s previous jawboning into an actual rate hike. The Fed’s first such move since 2023 was well-priced by the Fed fund futures market, but the stock market was initially caught off-guard. The rate hike punished … Read more
The Market Breadth Summary: Broke Sharply The Stock Market Summary The S&P 500 rose fractionally for the week and hid some large market catalysts under the surface. Market breadth broke sharply from the S&P 500 with a large loss and return to the bottom of a trading range. A bearish breakdown in small caps provided … Read more
The Market Breadth Summary The Stock Market Indices Last week, retail and software stocks ignited, and the usual AI-related suspects also participated in the rally. Yet the advance unfolded beneath persistently weak market breadth, leaving a notable disconnect between price action and participation. The software rally is particularly interesting and gratifying to me given I … Read more
The Market Breadth Summary This is the week I finally had to turn bearish on the stock market. The warning signs have piled up too high for me to continue ignoring them. The momentum in the S&P 500 and NASDAQ has been incredibly strong, and that momentum kept me from making this call earlier. However, … Read more