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 stock market is scraping by just above oversold territory. The churn of last week has created a mosaic different trading conditions. The bears are salivating at the all-time lows. The hopefuls like me are finding slivers of opportunity in the breakouts. The stock charts in this review cover some of everything. … Read more
Stock Market Commentary I turned bearish on the stock market over two weeks ago. Last week began with confirmation as sellers followed through on a fade from a brief rally. Mid-week, the downward momentum came to a screeching halt as buyers took over most of the trading action. I pointed out the key signs suggesting … 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
Two weeks ago, I expressed caution over Spotify Technology (SPOT) in the wake of sellers fading an extremely bullish upgrade from an analyst at KeyBanc. That upgrade to overweight from sector weight included a $340 price target. The contrary and surprising trading action right after the analyst call was telling. A week after KeyBanc, an … Read more
Stock Market Commentary The S&P 500 (SPY) is a key driver of the stock market’s most predictable pattern. The index’s relentless rise this year has held the majority of the trading action above the 20-day moving average (DMA) (the dotted line in the chart below). Brief dips below the 20DMA set up tests of the … Read more