ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Housing Market Intro and Summary The Spring selling season looked like it started strong for new home sales. The data for April reveal a story evolving differently. Absolute inventories rose for both existing and new homes and yet sales declined. Housing starts also suffered a setback. Median prices of homes soared, especially for new homes, … Read more
Stock Market Commentary The S&P 500 (SPY) finally broke down and succumbed to the selling pressure building up in the stock market. A “surprise” surge in inflation as measured by the Consumer Price Index (CPI) delivered the headline catalyst for a day of broad-based selling. Given market breadth was already in the process of narrowing, … Read more
Housing Market Intro and Summary In March, home builder stocks pushed through softening housing data thanks in large part to builder-specific catalysts. In April, a series of strong earnings reports and a healthy rebound in the new homes market combined to propel most housing-related stocks higher still. The contrast between existing and new homes stood … Read more
Stock Market Commentary A week ago, the fading of the growth tantrum further solidified my bullish read on the stock market. Last week, big cap tech took over from the growth tantrum. Buyers passed the baton in impression fashion but left small caps behind. Regardless, market dips are attracting buyers in a rotating fashion. The … Read more
Housing Market Intro and Summary Softening housing data pointed to more normalization in the housing market. Normalization is returning housing data to prior trends and in some cases suggesting important plateaus. Home builder stocks powered through the softening data to show strength in sharp rebounds and fresh all-time highs. The arrival of the Spring selling … Read more