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 Last week was a week like few other for the volatility index, the VIX. In my last Market Breadth I made the case for the VIX mattering again. A VIX follow-through demonstrated even more strength and resilience. The resulting closing high for the year is a firmer bearish signal for the stock … Read more
Stock Market Commentary “This may be the most dangerous time the world has seen in decades.” This statement from Jamie Dimon, CEO of JPMorgan Chase (JPM), concluded his commentary on the bank’s Q3 earnings report. These words on Friday morning fittingly concluded a sobering week that started with tragedy and war raging in Gaza and … Read more
Stock Market Commentary: Last week I described how to reconcile a stock market that was both complacent and oversold. The stock market proceeded from there to double down on complacency while rebounding from “close enough to oversold” levels for market breadth. Traders are showing no worries as the volatility index (VIX) plunged to levels last … Read more
Stock Market Commentary: “The U.S. economy remains fundamentally strong, despite recent mixed data. Recent developments have increased the risk of a future adverse outcome. Our fortress principles are designed to withstandany operating environment.” JP Morgan Chase & Co (JPM), Investor Day 2022, Firm Overview, page 12 Starting from oversold conditions, the market was looking for … Read more
The Follow-Through Intro The biggest follow-through trades from “Key Stock Sectors Missed A Breakout In Market Breadth – Above the 40” (June 11, 2021) erupted in the housing-related plays. Big cap tech looks more ready than ever to reestablish its leadership position over the market. The stock market had an initial negative reaction to the … Read more