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 trading week started with a powerful jolt to the market. The major catalyst was a rumor that President Trump was considering a 90-day delay on tariffs, triggering a nearly 30-minute, $2.5 trillion rally. While ultimately unfounded, the rumor represented the kind of response markets expect: when financial markets panic, policy-makers panic. … Read more
Stock Market Commentary The stock market has a natural law of “physics.” Overly enthusiastic trading, whether up or down, eventually meets an opposite and sometimes equal force. This natural instability of extremes forms a basis of my market breadth trading rules. The enthusiastic post-election surge exhausted buyers enough to create a post-election reversal. Moreover, my … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are … Read more
This is a quick post on five charts that caught my eye on Tuesday, May 19th. All charts annotated at and downloaded from FreeStockCharts.com. Hortonworks, Inc. (HDP) has struggled to make a good post-IPO impression. The first earnings report underwhelmed and led to a fresh all-time low. The last earnings report was initially well-received and … Read more