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 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
Stock Market Statistics AT40 = 79.6% of stocks are trading above their respective 40-day moving averages (DMAs) (Day #10 overbought) AT200 = 77.7% of stocks are trading above their respective 200DMAs (7 1/2 year high) VIX = 20.8 Short-term Trading Call: neutral Stock Market Commentary A week ago, the overbought stock market stretched for a … Read more
Stock Market Statistics AT40 = 42.5% of stocks are trading above their respective 40-day moving averages (DMAs) (2-month low)AT200 = 42.1% of stocks are trading above their respective 200DMAs (2 1/2 week low)VIX = 31.5Short-term Trading Call: cautiously bearish Stock Market Commentary The swift stock market sell-off took a fresh turn for the worse. AT200 … Read more