ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The Market Breadth Summary Stock Market Commentary Chaotic trading continued last week. Some segments of the market are doing extremely poorly and other segments of the market that are doing extremely well. A market rotation has turned into stark divergence hidden by major indices which are mainly thrashing about. I see three major signals. One, … Read more
Thoma Bravo’s Buying Framework Amid the AI Panic The AI-driven fear in software stocks is palpable with daily headlines and relentless product releases from the AI disruptors. The buying opportunities are broadening so fast that I have to create and maintain a structured framework for separating the survivors from the laggards. As a part of … Read more
Stock Market Commentary Inflation grabbed the headlines last week, but market breadth was just as important for the stock market. With financial markets initially feeling good about the CPI report, buyers rushed for laggard stocks and created a market breadth revival for two days. The abrupt sentiment shift nearly eliminated all my concerns about a … Read more
Stock Market Commentary Holiday trading last week was deceptively lazy. The indices did a lot of churning, yet the S&P 500 and the ETF of small caps each made all-time highs at some point. A good number of individual stocks developed and followed through on bullish setups. For example, all week long, new highs greatly … Read more
Stock Market Commentary The stock market has a natural law of “physics.” Overly enthusiastic trading, whether up or down, eventually meets an opposite and sometimes equal force. This natural instability of extremes forms a basis of my market breadth trading rules. The enthusiastic post-election surge exhausted buyers enough to create a post-election reversal. Moreover, my … Read more