ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
AT40 = 46.3% of stocks are trading above their respective 40-day moving averages (DMAs) (1-month high)AT200 = 20.7% of stocks are trading above their respective 200DMAs (3-week high)VIX = 20.0Short-term Trading Call: cautiously bullish Commentary Just as the last oversold period exceeded expectations to an extreme downside, the rebound out of the oversold period is … Read more
AT40 = 20.4% of stocks are trading above their respective 40-day moving averages (DMAs) (ended 13 days in oversold territory)AT200 = 14.9% of stocks are trading above their respective 200DMAsVIX = 21.4Short-term Trading Call: bullish (with caveats all over again) Commentary All oversold periods must end – it is just a matter of how and … Read more
I saw a flicker of hope for home builders in the May Housing Market Review. Traders decided to snuff that flicker out very quickly afterward. When I wrote June’s housing market review and described a “struggling flicker,” the iShares US Home Construction ETF (ITB) was once again bouncing off the bottom of 2018’s trading range. … Read more
Pulte Homes (PHM) reported Q3 2018 earnings on October 23rd. The stock responded favorably with a 7.3% one-day gain. That same day, the S&P 500 (SPY) gapped down and sold off for four more trading days. The index now sits at a near 7-month low while PHM is holding an impressive 24.1% total post-earnings gain. … Read more
In most of my Housing Market Reviews this year, I chronicled the growing warning signs in the housing market and the on-going technical damage in the stocks of home builders. Until the last few months, I remained hopeful that a turn-around waited around the corner; I kept looking for the reassurances of the home builders … Read more