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: Nearly Broke The Stock Market Summary I am surprised that the stock market ended the week as well as it did given that early in the week rising interest rates nearly broke market breadth. Rising treasury yields followed higher oil prices and a worldwide sell-off in sovereign debt. The benchmark U.S. … Read more
The Market Breadth Summary Stock Market Commentary Last week was action-packed. Earnings dominated my focus, and the resulting trading action confirmed why it was important to ignore the bearish signals from market breadth last week. The market is as bullish as ever this year at the index level, even though market breadth still stains the … Read more
The Market Breadth Summary Stock Market Commentary There are no dips allowed in this stock market. A week ago, I labelled the trading environment as “buy-the-dips” because of the psychology of post-oversold trading. Those dips turned out to be hard to find. Only day traders could notice any weakness in the price action. The stock … Read more
Stock Market Commentary The S&P 500 is down 4.1% month-to-date. This loss makes this month a below average September for a maximum drawdown and fulfills September’s reputation as one of the index’s three most dangerous months of the year. As I noted last week, August’s extreme drawdown significantly increased the risk of September being worse … Read more
Stock Market Commentary A curious break in the trading action unfolded as financial markets wrestled with two “disappointing” inflation reports. Both the CPI (consumer price index) and wholesale inflation (the producer price index or PPI) came in slightly higher than “expected” (headline and core). The data just tell me expectations are unrealistic or at best … Read more