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 Could the housing downturn already be coming to a swift end? The stocks of home builders are delivering this message. They have enjoyed a very healthy rally and recovery from the depths of the March stock market crash. The challenges ahead are large: worsening economic conditions, unemployment at historically high … Read more
U.S. Gross Domestic Product (GDP) for the first quarter of 2020 (advanced estimate) plunged by 4.8% as the coronavirus pandemic put the economy on lockdown. The following categories made positive contributions to GDP in ascending order of their contribution to the percentage change: Housing and utilities: .08% Change in farm inventories: 0.10% Government consumption expenditures … Read more
Housing Market Intro and Summary Something surprising is happening in the middle of the current downturn in the housing market: buyers keep coming and home builders are staying resilient and resolute. A series of earnings reports from publicly traded home builders do not reflect the historic plunge in builder sentiment from April (see below). The … Read more
Stock Market Statistics AT40 = 69.6% of stocks are trading above their respective 40-day moving averages (DMAs) 3+ month highAT200 = 14.8% of stocks are trading above their respective 200DMAsVIX = 33.6Short-term Trading Call: neutral Stock Market Commentary The stakes are ever higher. Right alongside confirmations of major breakouts from the major stock indices, AT40 … Read more
“…if not for the pandemic, the strong momentum going into the Spring may have actually sent confidence higher still. Instead, confidence will undoubtedly plunge in the next report. The consumer sentiment index plunged to a 4-year low as a leading indicator of where builder confidence will go.” Housing Downturn: Put Spring’s Momentum On the Shelf … Read more