ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
AT40 = 76.3% of stocks are trading above their respective 40-day moving averages (DMAs) (1st day overbought)AT200 = 27.4% of stocks are trading above their respective 200DMAs (6-week high)VIX = 17.8Short-term Trading Call: cautiously bullish Commentary I noted in my last post that the signs of exhaustion in the major indices gave way to more … Read more
LGI Homes (LGIH) released a strong sales report that granted investors in home builders a much needed sigh of relief. On January 7, 2019 (mislabeled as the 4th in the press release), LGIH announced: …an all-time record for home closings during a single month with 884 homes closed in December 2018, representing year-over-year growth of … Read more
AT40 = 20.4% of stocks are trading above their respective 40-day moving averages (DMAs) (ended 13 days in oversold territory)AT200 = 14.9% of stocks are trading above their respective 200DMAsVIX = 21.4Short-term Trading Call: bullish (with caveats all over again) Commentary All oversold periods must end – it is just a matter of how and … Read more
I saw a flicker of hope for home builders in the May Housing Market Review. Traders decided to snuff that flicker out very quickly afterward. When I wrote June’s housing market review and described a “struggling flicker,” the iShares US Home Construction ETF (ITB) was once again bouncing off the bottom of 2018’s trading range. … Read more
AT40 = 3.6% of stocks are trading above their respective 40-day moving averages (DMAs) (oversold day #7, 10-year low!)AT200 = 8.0% of stocks are trading above their respective 200DMAs (9 1/2- year low!)VIX = 36.1 (1-day gain of 20.0%, 10 1/2- month high)Short-term Trading Call: bullish (oh so many caveats below!) Commentary Although it’s been … Read more
AT40 = 23.0% of stocks are trading above their respective 40-day moving averages (DMAs) (low of 18.9%)AT200 = 22.6% of stocks are trading above their respective 200DMAs (new 32-month low)VIX = 22.6 (as high as 25.9)Short-term Trading Call: cautiously bullish CommentaryIt was a wild day in the stock market, but the market still avoided closing … Read more
I saw a flicker of hope for home builders in the May Housing Market Review. Traders decided to snuff that flicker out very quickly afterward. When I wrote June’s housing market review and described a “struggling flicker,” the iShares US Home Construction ETF (ITB) was once again bouncing off the bottom of 2018’s trading range. … Read more
AT40 = 44.5% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 30.3% of stocks are trading above their respective 200DMAs (just above a 32-month low) VIX = 18.1 Short-term Trading Call: neutral Commentary Last week was a week where the stock market seemed to force its way into the endzone … Read more
AT40 = 27.6% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 25.6% of stocks are trading above their respective 200DMAs (just above a 32-month low) VIX = 21.5 Short-term Trading Call: neutral Commentary Last week on November 20th, AT40 (T2108), the percentage of stocks trading above their respective 40-day moving … Read more
I normally wait until my monthly Housing Market Review to report housing data, but I made an exception for November’s NAHB/Wells Fargo Housing Market Index (HMI) which measures the aggregate of home builder sentiment. The plunge in sentiment delivered a timely exclamation point to all the other signs of a slowdown I have been observing … Read more