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 Last week featured an intense barrage of earnings reports. The collective response on the major indices was a major yawn. The S&P 500 finished flat for the week. The NASDAQ and the iShares Trust Russell 2000 Index ETF both softened by 0.4%. Financials were a notable exception as the Financial Select Sector … Read more
Stock Market Commentary The stock market continued its streak of trickiness. Buyers and sellers played a fierce bear-bull battle starting with one of the biggest fake-out one-day rallies since last September 2nd’s near parabolic run-up. Fresh money flowed into funds to start the month of March to for gains of 2.4% on the S&P 500 … Read more
Stock Market Commentary Sellers beat a hasty retreat from the stock market as another bearish signal enjoyed a fleeting existence. The last bearish period lasted about three days. The previous bearish period barely survived a day. The stock market’s ability to quickly wipe away bearish signals is impressive. The buying force over the last week … Read more
Stock Market Commentary After the recent bearish divergence resolved to the downside, the stock market rebounded sharply. Volatility was over-extended and my favorite breadth indicator plunged at an extreme rate. In that context, the stock market’s subsequent bounce made sense as relief from extreme conditions. The sellers followed through on the resolution of bearish divergence … Read more
Stock Market Commentary The Presidential inauguration is a hallowed American tradition. The stock market celebrated the incoming Biden and Harris administration with new all-time highs on good trading volume. The start of a new American administration is as good a time as any to back down from my recent short-term bearish call. While this overbought … Read more
Stock Market Statistics AT40 = 61.1% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 53.2% of stocks are trading above their respective 200DMAs VIX = 25.0 Short-term Trading Call: cautiously bullish Stock Market Commentary Without recognizing the bullish divergence that ended the previous week, last week’s trading dynamic of a … Read more
Stock Market Statistics AT40 = 28.7% of stocks are trading above their respective 40-day moving averages (DMAs). (traded as low as 24.8%)AT200 = 40.0% of stocks are trading above their respective 200DMAsVIX = 27.8 (traded as high as 31.1)Short-term Trading Call: neutral (changed from cautiously bearish) Stock Market Commentary For a brief moment the entire … Read more
Sam Ro is a managing editor at Yahoo Finance. Ro’s tweet with data from FactSet and Goldman Sachs (GS) shows how just 5 stocks – Facebook (FB), Amazon.com (AMZN), Apple (AAPL), Microsoft (MSFT), and Alphabet (GOOG) – dominate the S&P 500 (SPY). The top 1 percent seem to be the only story worth telling given … Read more
Stock Market Statistics AT40 = 40.1% of stocks are trading above their respective 40-day moving averages (DMAs) (2-month low)AT200 = 20.1% of stocks are trading above their respective 200DMAs VIX = 34.7Short-term Trading Call: neutral Stock Market Commentary After a one-day respite, the damage in the stock market continued. This time, the damage was more … Read more
The Stock Alphabet (GOOG), formerly Google, has stalled out in an important gap created in February. At that time, the stock lost 4.3% on a day when the entire stock market gapped down and ushered in he beginnings of the March stock market collapse. The stock rallied into the gap on June 10th. Two weeks … Read more