ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
When Jim Cramer gets exorcised about something, I sit up and pay attention. As a student of market extremes, Cramer’s extremes offer their own special trading signals. At the onset of the pandemic, I wrote about “Cramer in turmoil” as a demonstration of how quickly financial narratives can change in response to market extremes, revealing … Read more
A month ago I laid out the case and conditions for bottoming across the collection of ARK funds. The key pivot rested with the ARK Fintech Innovation ETF (ARKF). It still is the first and only of the pre-pandemic ARK funds to break its pandemic era closing low. Over the past month, ARKF struggled mightily … Read more
Stock Market Commentary: The market feels heavy and bearish. Yet, the major indices continue to bounce between the edges of their “churn zones.” Last week’s churn delivered a surprising ray of light tantalizing the dour sentiment. While the S&P 500 and the NASDAQ closed with a second straight week of losses, the major breadth indicators … Read more
August through October are the most dangerous months of the year for the S&P 500 (SPY). The historical drawdowns create a well-known pattern of trading that Jim Cramer of CNBC has referenced several times for at least a month. While this year’s August failed to fulfill its destiny, September delivered on its promises with heavy … Read more
Stock Market Commentary The stock market continued its streak of trickiness. Buyers and sellers played a fierce bear-bull battle starting with one of the biggest fake-out one-day rallies since last September 2nd’s near parabolic run-up. Fresh money flowed into funds to start the month of March to for gains of 2.4% on the S&P 500 … Read more
Stock Market Commentary The stock market got quite tricky last week. A day after buyers re-established control, sellers returned with a sustained fury. The selling on Thursday reflected the stock market’s split personality while the follow-up selling on Friday seemed broader. The pressure on the the stock market looks like an ominous setup for March … Read more
The Amazon Panic An “Amazon Panic” describes a rush of selling in the stocks of companies potentially impacted by a new initiative from Amazon.com (AMZN). Invariably, the dust settles, the panic subsides, and buyers pick up the pieces. The whirlwind is a short-term, quick trigger reaction to a world shattered by Amazon. An Amazon Panic … Read more
“Looking for one of the 4% of stocks still trading above their respective 200DMAs? Apple (AAPL) is one of those lucky few. If sellers break AAPL, I foresee two binary possibilities: 1) buyers will finally see enough bargains to go on a buying spree, or 2) buyers give up all hope and the resulting rush … Read more
As I scrambled to write my update on a “suddenly oversold” market stock market, I listened to Jim Cramer’s Mad Money. Cramer is naturally entertaining, and I particularly like hearing his take at key market moments like these. On Tuesday, February 25th, Cramer was firmly in the bearish camp on his Mad Money show. He … Read more
AT40 = 38.3% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 44.1% of stocks are trading above their respective 200DMAs (2-month low)VIX = 19.0Short-term Trading Call: neutral Stock Market Commentary The Trigger Finger On Tuesday (August 27), I saw enough hints of a flip from a bullish to bearish divergence … Read more