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 Stock Market Commentary I am risk off in the coming week because market breadth failed twice at the overbought level. One failure is enough to make me cautious, but two tells me that the market is fighting too hard just to go higher. Moreover, earnings season is in full swing. For … Read more
The Market Breadth Summary Small cap stocks led a market breadth breakout, then faded just short of overbought, leaving me encouraged by momentum but wary of a near-term pullback. The S&P 500 ground to fresh highs, while the NASDAQ lagged by stalling at prior peaks. A clean breakout still awaits for the NASDAQ. CES-driven leadership … Read more
Stock Market Commentary Last week’s trading had something for almost everyone: volatility, churn, recovery, and a bank scare. A familiar story about renewed U.S.–China trade tensions expanded into a larger mosaic of market stress and resilience. Still, given market breadth remains broken, I see a market skating on the edge. The volatility index (VIX) summarizes … Read more
Stock Market Commentary In a flashback to August’s opening trading salvo, September trading started with a sharp pullback. The decline fit the standard theme of “professional” traders and investors returning from summer vacations to take profits from a market levitating on low volume vapors. However, sensing redux price action, the market’s persistent buyers jumped right … Read more
Stock Market Commentary Last week delivered one of the most bullish one-day expansions of market breadth I have ever seen. On Friday, August 22nd, Federal Reserve Chair Jerome Powell spoke at the Jackson Hole confab and gave financial markets sufficiently dovish signals to reignite a rally that had waned most of the week. Big cap … Read more