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 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
The Follow-Through: Strong Start for Stocks The month of September enjoyed a strong start as last week’s fairy dust from J-Pow continued to work its magic. Short-term market breadth with AT50, the percentage of stocks trading above their 50-day moving averages (DMAs), also continuing higher while leaving behind the longer-term breadth indicator in AT200, the … Read more
Stock Market Commentary Say whatever you want, Jerome (Jay) Powell, the chair of the Federal Reserve, affectionately known as J-Pow, has become a master orchestrator of the stock market. Other Federal Reserve Board members peppered the airwaves with hawkish talk about tapering and inflation in the days preceding Powell’s address at this year’s Jackson Hole, … Read more
Stock Market Commentary Pattern trading uses consistent bets on repeated behaviors in financial markets. Over the course of time, pattern trading delivers profits from the diligent application of rules based on standard, technical setups in stock charts. The persistent uptrends and trading ranges in this pandemic stock market have delivered a surprisingly long stretch of … Read more
Deteriorating market breadth flashed warning signs for the stock market once again. A signal from the currency market is adding weight to the warning: the Australian dollar versus the Japanese yen (AUD/JPY). AUD/JPY represents the divergence dragging on the stock market. AUD/JPY topped out from March to June, a period over which many individual stocks … Read more