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 One hundred and fifty minutes. The bearish signal that hit the stock market after the last overbought period ended essentially lasted just 150 minutes. Buyers stepped into the market on Monday after lunchtime on the East Coast and essentially barely took a pause until the last 2 hours of trading today (Wednesday, … Read more
The Misdirection The New York Times (NYT) created buzz with a report alleging that members of the Trump administration enabled “elite traders” to profit off the coronavirus-driven collapse in the stock market. While the administration confidently reassured the public about the coronavirus (COVID-19), members of the administration reportedly shared their concerns about “uncertainties” at a … Read more
The stock market convincingly followed through on last week’s bullish divergence that indicated strengthening stock market breadth. At the time of the bullish divergence, AT40 (T2108), the percentage of stocks trading above their respective 40-day moving averages (DMAs), powered higher even as the S&P 500 (SPY) lost 1.0%. The index also suffered a 50DMA breakdown. … Read more
Stock Market Statistics AT40 = 41.8% of stocks are trading above their respective 40-day moving averages (DMAs) (ranged from 25.8% to 42.8%) AT200 = 42.6% of stocks are trading above their respective 200DMAs (ranged from 39.2% to 45.5%) VIX = 27.6 Short-term Trading Call: cautiously bullish Stock Market Commentary Last Friday was the kind of … Read more
An Inescapable Truth In June, 2018, I made the following claims and observations (with fresh emphasis): “…at the end of the day, Trump is determined to drive the U.S. trade deficit as close to zero as possible. This cannot happen without some substantial economic disruptions. To the extent the market refuses to price in these … Read more