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 oversold bounce last week exceeded my expectations. I did not expect the week to end with the S&P 500 and the NASDAQ hitting fresh all-time highs. Both indices seemed to offer limited upside for trading oversold conditions.The oversold bounce also disappointed me. I looked to beaten up stocks as the source … Read more
Stock Market Commentary The stock market is a cauldron of contradictions and divergences. Breakdowns below key support levels abound. Stocks suffer post-earnings fades even after companies report strong results, especially in both beaten up growth stocks and resilient big cap tech. Yet, the S&P 500 just rises above the steady erosion of market breadth with … Read more
Stock Market Commentary A great stock market divergence continued last week. However, the market overall is looking more and more resilient as it continues to digest inflation fears. Even the biggest victim of the great divergence, the NASDAQ (COMPQX), remains well above its lows for the month. A very dovish session with Federal Reserve Chair … Read more
Stock Market Commentary The stock market gapped up and never looked back in the wake of the Presidential Inauguration. Subsequently, buyers produced mixed follow-through for two days. Big cap tech defied the narrative of a rotation into value and industrial names by delivering the most convincing follow-through. A third drop from overbought conditions in a … Read more
Stock Market Commentary The extended overbought period still looks tenuous. For the second trading day in a row, AT40 (T2108), the percentage of stocks trading above their respective 40-day moving averages (DMAs), broke down below the overbought threshold of 70% before closing at 73.0%. The major indices do not reveal these weakening overbought conditions. The … Read more