ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
I saw a flicker of hope for home builders in the last Housing Market Review. Traders decided to snuff that flicker out very quickly afterward. Breakouts transformed into new tops and now the struggling flicker comes from home builder stocks holding support. The short-term path ahead looks like chop at best, especially with the latest … Read more
AT40 = 48.3% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 50.4% of stocks are trading above their respective 200DMAs VIX = 17.9 Short-term Trading Call: bearish Commentary The trading action this week confirmed the bearish change in trading that occurred when AT40 (T2108), the percentage of stocks trading above … Read more
AT40 = 66.1% of stocks are trading above their respective 40-day moving averages (DMAs) (ended 1-day overbought) AT200 = 55.5% of stocks are trading above their respective 200DMAs (a 4-month high) VIX = 12.9 Short-term Trading Call: bearish Commentary Flipping short-term bullish was fun while it lasted…all of two days. The Federal Reserve hiked interest … Read more
The fundamentals have changed little. Sentiment is making a dramatic shift. The last Housing Market Review covered data reported in April, 2018 for March, 2018. At the time, I lamented a dissonance of decelerating housing data and diverging home builder stocks. Over a month later, the deceleration is a little less pronounced while the divergence … Read more
AT40 = 66.9% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 54.3% of stocks are trading above their respective 200DMAs (a near 4-month high) VIX = 14.9 Short-term Trading Call: neutral Commentary Oh the hazards of changing short-term trading calls in this churning market! Reluctantly, I switched my short-term trading … Read more