ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The seasonal trade on home builders for 2017/2018 showed its first sign of trouble when the iShares US Home Construction (ITB) fell sharply off its 10+ year high in January on the same day the S&P 500 (SPY) set a new (and its last) all-time high. Almost two weeks later, in early February, the under-performance … Read more
AT40 = 27.1% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 44.4% of stocks are trading above their respective 200DMAs VIX = 19.6 Short-term Trading Call: neutral (caveats below!) Commentary President Trump has been talking about taking unilateral trade actions since he was campaigning in 2016. The rhetoric heated up … Read more
AT40 = 25.4% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 43.9% of stocks are trading above their respective 200DMAs VIX = 19.9% Short-term Trading Call: neutral (caveats below!) Commentary As I feared was likely, the S&P 500 (SPY) wasted no time in breaking its 50-day moving average (DMA) support. … Read more
AT40 = 31.2% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 48.0% of stocks are trading above their respective 200DMAs VIX = 18.6 (17.7% gain) Short-term Trading Call: bullish (caveats below!) Commentary During the thick of the sell-off earlier this month, I stated with tongue-in-cheek that Federal Reserve Chair Jerome … Read more
AT40 = 36.2% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 50.4% of stocks are trading above their respective 200DMAs VIX = 16.5 Short-term Trading Call: neutral (awaiting confirmation of bullish breakout) Commentary Something woke the bulls and buyers back up enough to get the steamroller warmed up again. The … Read more