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 NVIDIA Corporation (NVDA) confirmed a double-top with today’s 3.4% loss. For only the sixth time this year, NVDA closed below its uptrending support at the 20-day moving average (DMA) (the dotted line below). Three of these closes have come in the last three days. The stock is now within “inches” of confirming … Read more
Housing Market Intro and Summary What happened in the housing market in March, 2024? Home builders grew more positive and greeted the spring selling season with a resurgence in housing starts. In my previous Housing Market Review, I pointed out breakouts in the stocks of homebuilders and a bottoming in existing home sales. Both developments … Read more
Stock Market Commentary The stock market put an exclamation point on the end of the previous week’s statement performance. Market breadth made an important breakout to a 2-month high and almost looks ready to return to overbought conditions. Such a milestone would finally align my favorite technical indicator with the relentless strength in the stock … Read more
Stock Market Commentary Stocks quickly invalidated the latest topping signals and recorded a statement week. This regular routine was further boosted by a Federal Reserve that dished out stronger forecasts for the economy and inflation and yet, much to my bemusement, “promised” the stock market three rate cuts are still likely ahead for the year. … Read more
Stock Market Commentary A curious break in the trading action unfolded as financial markets wrestled with two “disappointing” inflation reports. Both the CPI (consumer price index) and wholesale inflation (the producer price index or PPI) came in slightly higher than “expected” (headline and core). The data just tell me expectations are unrealistic or at best … Read more
Stock Market Commentary Is another tease for the bears underway? The current bullish rally has included so many temporary bearish signals that I had to stop using baseball metaphors to call strikes. Now, the latest bearish signal looks like the most ominous yet. In the wake of February’s job report, price action delivered a wicked … Read more
Housing Market Intro and Summary What happened in the housing market in February, 2024? Breakouts and bottoms happened. In my previous Housing Market Review, I posited the possibility of a top in the seasonal trade on home builders. In the subsequent month, the stocks of home builders took on new life as investors forgot about … Read more
Stock Market Commentary Last week delivered the magic of all-time highs. Another all-time high for the S&P 500 and the NASDAQ’s entry into the all-time high club provided a benign feel to the stock market. Financial markets even look like a safe haven from all the turmoil and trouble in the world. Investors and traders … Read more
Stock Market Commentary There is a deepening irony in my on-going bearishness on the stock market. The sector most visibly responsible for the anti-bearish animal spirits leaning against poor market breadth is the same sector I remain unapologetically bullish about: Artificial Intelligence (AI). The ironic contrast was in full display last week as the bullish … Read more
Stock Market Commentary I hate to be one of THOSE bears, but this current wild stock market has turned me into the classic broken record of bearishness. Last week’s red flags consisted of mind-boggling price changes in certain stocks both up and down. Stocks should not move in big chunks at a time, sometimes for … Read more