ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Stock Market Analysis Summary Major U.S. equity indices extended gains after a strong end to November, supported by expectations of a December Fed rate cut. Market breadth indicators (AT50, AT200) improved but failed at primary downtrend resistance, signaling lingering internal weakness. Small caps (IWM) outperformed with a breakout to all-time highs, while several major tech … Read more
Stock Market Commentary The month of August featured three distinctly strong expansions of market breadth. The last expansion featured the largest single-day expansion I have ever seen. In between these episodes, the market showed signs of exhaustion. The latest exhaustion is centered on the AI trade. NVDA earnings slightly disappointed and included slowing revenue growth … Read more
Stock Market Commentary Finally the bears break in on all the fun the bulls have had for months. The stock market got overwhelmed with a flood of bad news that was just too difficult to ignore or look through (for now). The July jobs report was not just weak but also it included a massive … Read more
Stock Market Commentary In just three months, the stock market has transformed from fragile to fearless. Friday’s return to overbought territory, on the heels of another jobs report that beat “consensus expectations”, underlined the market’s fearless bullishness. The jobs report made imminent rate cuts even less likely. Along with that prospect, bond yields nudged higher … Read more
Stock Market Commentary The stock market resolved one cliffhanger, a hovering just below resistance at 200-day moving averages (DMAs) on the major indices, and moved on to another. A large surge in reaction to a pause in China vs U.S. trade hostilities sent the major indices gapping right over resistance and directly into the overbought … Read more