ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The volatility index, the VIX, has closed below 11 for 5 straight days and 22 of the last 25. These stretches of extremely low volatility (I will now shorten it to ELV for convenience) include a 14-year low for the VIX. The interruption in this streak of ELV included an abrupt wake-up call where the … Read more
AT40 = 47.5% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 55.3% of stocks are trading above their respective 200DMAs VIX = 9.8 (volatility index) Short-term Trading Call: cautiously bullish Commentary I should no longer be amazed, but I am still amazed: the inability of sellers to generate follow-through in … Read more
Sometimes an uptrend tells traders everything they need to know. On May 22, 2017, I reviewed the results from my scan for stocks with relative strength during times of weakness in the S&P 500 (SPY). I lamented how last week’s flash of selling did not provide any good buying opportunities. So I indicated my plan … Read more
AT40 = 42.8% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 54.3% of stocks are trading above their respective 200DMAs VIX = 12.0 (volatility index) – a 17.9% decrease Short-term Trading Call: neutral (bullish only after the latest Trump Turmoil reverses OR oversold conditions, potentially bearish upon a retest of … Read more
AT40 = 36.5% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 51.2% of stocks are trading above their respective 200DMAs VIX = 15.6 (volatility index) – a 46.4% increase!!! Short-term Trading Call: neutral (downgrade from cautiously bullish) Commentary Time to downgrade my cautious bullishness to neutral. The S&P 500 (SPY) … Read more