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 stock market indices enjoyed an impressive year. However, weak and declining market breadth produced numerous exceptions to the strong performance of indices and ETFs. A number of important and well-known individual stocks corrected, collapsed, and crashed in 2021. For some, the tailwinds of the pandemic ran out. For others, investors tired … Read more
Stock Market Commentary It was a close call. The technical deterioration of the previous week put the Santa rally in peril. At the start of trading last week, the Grinch roasted Santa enough to ignite oversold trading conditions. Santa’s revenge came in the form of a sharp rebound out of the 1-day oversold period. Subsequently, … Read more
Stock Market Commentary The first trading week of November was action-packed. At the start of the week I looked ahead to monetary policy from the Federal Reserve and the October jobs report as key catalysts. While those events were indeed important, the stock market was treated to an overlay of at least two other important … Read more
Stock Market Commentary I flipped bearish on the stock market over a week ago because of a significant breakdown in the S&P 500 (SPY). Moreover, the breakdown occurred alongside vulnerable breadth indices and a bottoming volatility index (VIX). As a result, when the index closed lower than the previous week’s low, I braced for follow-through. … Read more
Stock Market Commentary The refresher for extended overbought conditions quickly transformed back into a close call. Sellers again created weakening overbought conditions for the stock market with the key indicator hitting the threshold. The minor selling in the major indices may mask a broader deterioration in the technical health of the stock market. Unlike the … Read more