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 According to Investopedia, the Santa Claus rally “describes a sustained increase in the stock market that occurs in the last week of December through the first two trading days in January.” With the legendary rally still a week away, the S&P 500 (SPY) finds itself priced exactly where it was at the end … Read more
Stock Market Commentary The stock market wilted toward oversold territory ahead of the Federal Reserve’s latest pronouncements on monetary policy. However, the relief from hearing exactly what everyone expected was so large that the S&P 500 (SPY) gained 1.6% and almost hit a new all-time high. The move fooled a lot of people (see below). … Read more
Stock Market Commentary The post-oversold divergence resolved to the downside. The downward pressure was evident across a wide swath of stocks, and big cap stocks were only strong enough to keep the S&P 500 (SPY) aloft for a day (at an all-time high). Now, the stock market looks toppy and heavy enough to dip back … Read more
Stock Market Commentary The stock market’s dip into oversold territory lasted the typical one day. The immediate wake was ugly. The follow-through revealed a new divergence. The resulting oversold bounce carved out the S&P 500 for special status as the winner of the divergence. The index hit an all-time high while the majority of the … Read more
Stock Market Commentary The November jobs report suggested that the employment rate fell to levels last seen before the pandemic. However, the 210,000 additional jobs is well below the 1,000,000 additional jobs estimated by the U.S. household survey. This great divergence is a good metaphor for the uncertainty causing sharp and wide gyrations in the … Read more