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 After a month of churning, market breadth is wavering again. This slip is just about the only sign that the market cares at all about looming risks from a potential government shutdown. Even the volatility index (VIX) dropped 8.6% on Friday and remains just below where it closed right before the tariff … Read more
Stock Market Commentary Inflation grabbed the headlines last week, but market breadth was just as important for the stock market. With financial markets initially feeling good about the CPI report, buyers rushed for laggard stocks and created a market breadth revival for two days. The abrupt sentiment shift nearly eliminated all my concerns about a … Read more
Stock Market Commentary The stock market experienced a hiccup in an otherwise strong post-oversold bounce. The Q1 GDP report revealed a small contraction that surprisingly caught the market off guard. However, this contraction was driven primarily by a surge in imports as businesses rushed to get ahead of anticipated tariffs. I assume a lot of … Read more
Stock Market Commentary A week ago, I concluded that the stock market had reached “oversold enough” trading conditions. Last week confirmed an oversold low as market breadth rapidly broadened and supported an all-time high redux for the S&P 500. Yet, this revival comes with important caveats. Uncertainty looms over the Federal Reserve’s next moves even … Read more
Stock Market Commentary In Q2, the S&P 500 (SPY) enjoyed a 2-month rebound from an April sell-off. The index ended Q2 with a 3.9% gain. The stock market as a whole ended Q2 with a notable divergence in which market breadth, long maligned for the quarter, suddenly improved despite bearish topping patterns appearing on both … Read more