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 For one day, the stock market suddenly cared about rising inflation numbers. The recovery mode is already underway. After slamming into the wall of inflation, the stock market is now climbing the wall of inflation. On Friday, in its survey of consumers, the University Michigan had the following to say about the … Read more
Housing Market Intro and Summary In the last Housing Market Review, I described the growing calm in the housing market data that contrast with the sell-off in home builder stocks. That sell-off worked in sync with the general stock market. The rebound in October also worked in parallel with the general stock market. As a … Read more
Housing Market Intro and Summary The housing market’s comfortable calm continued into September even as the stock prices of home builders raced downward. A general sell-off in the stock market ensnared housing-related stocks. Yet, the housing data reported in September showed little change from the prior month. While home builder stocks ignore the calm in … Read more
The seasonal trade in home builders continues to unfold more like a typical year. The iShares U.S. Home Construction ETF (ITB) peaked in May on an absolute basis and relative to the S&P 500 (SPY). Since that peak, ITB is down 12.2% while the S&P 500 is UP 3.9%. This gap is so wide that … Read more
Stock Market Commentary The weight of deteriorating market breadth was undermining the stock market even as on-going rotations kept the indices floating higher. Last week, the tone made one of those periodic, yet still small, shifts. When news broke that Epic Games won a key provision of its lawsuit against Apple and its Apple Store, … Read more