ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The Federal Reserve released its report on Financial Stability with an interesting emphasis on potential vulnerabilities from “elevated risk appetites”. The Fed included an evaluation of valuation measures. The report even called out “meme stocks” as part of its evidence. However, the report stopped short of calling the market outright over-valued. Instead, the Fed took … Read more
Why Sell In May? “Sell in May” is an old stock market adage that advises investors to sell in May and leave the stock market alone until November. According to Investopedia, the adage identifies May through October as a period of under-performance. The adage survives despite its persistently poor performance as a stand-alone strategy. For … Read more
Stock Market Commentary Last week featured an intense barrage of earnings reports. The collective response on the major indices was a major yawn. The S&P 500 finished flat for the week. The NASDAQ and the iShares Trust Russell 2000 Index ETF both softened by 0.4%. Financials were a notable exception as the Financial Select Sector … Read more
North American: The United States “What we’re seeing now is an economy that seems to be at an inflection point….we feel like we are at a point where the economy is about to start growing much more quickly, and job creation coming in much more quickly…we see strong growth and strong job creation starting right … Read more
Stock Market Commentary The week began with two straight days of selling for the stock market. Almost everything was in place for a real pullback. Although the S&P 500 (SPY) was less than 2% off its all-time high, my favorite measure of breadth in the stock market, AT40 (T2108), the percentage of stocks trading above … Read more