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 Bears still look ready to bow out, but they still have their paws firmly planted on high-tech stocks, especially semiconductors. The market rotations out of tech are nudging enough stocks higher, especially small caps, to rechallenge the threshold defining overbought conditions for market breadth. The stark divergence in stocks greatly reduces the … Read more
Stock Market Commentary Can a bullish divergence create a bottom for stocks? The stock market ended last week with an emphatic “YES!” A wild week got treacherous after Thursday’s META pricequake. Investors rushed for the exits after Meta Platforms (META) reported earnings. The sympathy selling went far and wide. Fortunately, earnings from Alphabet (GOOG) and … Read more
Stock Market Commentary Last week was a week like few other for the volatility index, the VIX. In my last Market Breadth I made the case for the VIX mattering again. A VIX follow-through demonstrated even more strength and resilience. The resulting closing high for the year is a firmer bearish signal for the stock … 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
(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
(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
A week ago, I wrote “Simple Reasons to Like IBM Despite the Headwinds.” As I feared/suspected at the time, sellers stepped in at an important resistance level. In four quick days, International Business Machines (IBM) dropped like a rock and retested presumed support from the announced expansion of the buyback. I thought I would have … Read more
International Business Machines (IBM) International Business Machines (IBM) experienced an unusually large post-earnings drop of 8.3% on April 19th. This was despite reaffirming its FY13 earnings guidance. After one more day of selling, it was off to the races. In less than a month, IBM had recovered all its post-earnings losses. The stock churned and … Read more
With tongue reaching for the cheek last week, I declared the market both extremely undervalued and very overvalued, guessing that “as earnings season grinds on, I suspect the near-predictable pattern of post-earnings fades will finally wear thin, giving way to more bullish behavior.” I did not expect the turn to happen so clearly and dramatically … Read more