ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The Follow-Through Intro The stock market followed a rare stumble with a broad-based rebound from “oversold enough” conditions. Stocks were generally up across the board as buyers rushed in to grab “bargains.” AT40 (T2108), the percentage of stocks trading above their respective 40-day moving averages (DMAs), jumped from 37% to 46%. My favorite technical indicator … Read more
Stock Market Commentary The Federal Reserve seemed to change the rules of the game. To-date, easy money policies and stubborn dovishness in the face of rising inflation was a formula for higher asset prices, reflation and inflation-friendly trades, and even rising fears of an over-heating economy. Last week, Federal Reserve Chair Jay Powell shifted the … Read more
Stock Market Commentary The extended overbought period still looks tenuous. For the second trading day in a row, AT40 (T2108), the percentage of stocks trading above their respective 40-day moving averages (DMAs), broke down below the overbought threshold of 70% before closing at 73.0%. The major indices do not reveal these weakening overbought conditions. The … Read more
Stock Market Statistics AT40 = 19.6% of stocks are trading above their respective 40-day moving averages (DMAs) (oversold)AT200 = 36.2% of stocks are trading above their respective 200DMAsVIX = 28.6Short-term Trading Call: cautiously bullish Stock Market Commentary On Monday I switched to a neutral short-term trading call to get mentally ready for a major change … Read more
Stock Market Statistics AT40 = 56.6% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 14.5% of stocks are trading above their respective 200DMAsVIX = 31.9Short-term Trading Call: neutral Stock Market Commentary The week began with sellers finally drawing a line in the sand. The week ended with a counter from … Read more