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 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
Stock Market Commentary Overhead resistance once prevailed over expanding market breadth, particularly over the past two trading sessions. The dominant headline was Federal Reserve Chair Powell’s warning about the difficult scenario facing the Fed due to tariffs. I interpreted his message as an intention to avoid responding as long as possible. For a market pricing … Read more
Stock Market Commentary It was an unfavorable day in the stock market, as I anticipated in “Small Cap Stocks Uncork Oversold Conditions.” The following post is a summarized transcript of a “show and tell” video I posted to talk through the accumulating extremes in this oversold market. I used ChatGPT to help with the clean-up. … Read more
My idea for a trade on the U.S. CPI (Consumer Price Index) report seemed like a great idea last month. Up to that point, the market experienced sharp swings based on the directional gap between the actual inflation readings and expected inflation. I used the Cleveland Federal Reserve’s “nowcasting” to generate an approximate trading model. … Read more
The news headlines rang out today that Russia’s leader Vladimir Putin gave the orders to send “peacekeeping” troops into two breakaway regions of Ukraine. Stock market futures reacted instantly. Yahoo had a particularly dramatic headline declaring that futures “tanked.” Reflexively, I checked CNBC to review the preliminary damage: S&P futures down 1.8% and the NASDAQ … Read more