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 indices enjoyed an impressive year. However, weak and declining market breadth produced numerous exceptions to the strong performance of indices and ETFs. A number of important and well-known individual stocks corrected, collapsed, and crashed in 2021. For some, the tailwinds of the pandemic ran out. For others, investors tired … Read more
The Follow Through Intro In this premiere edition of “The Follow Through”, I review the latest trading developments in stocks and indices covered in my last Above the 40 blog post: “No Deal for a Confirmation of the Market Breadth Breakout.” This format will focus on video as a quick way of sending out new … Read more
Stock Market Commentary I fully anticipated follow-through to the breakout of market breadth that started trading last week. Instead, trading on the major indices wavered going into a mini pullback on Thursday. As a result, Friday’s rally following the May jobs report failed to generate a confirmation of the market breadth breakout. With job creation … Read more
Stock Market Statistics AT40 = 28.7% of stocks are trading above their respective 40-day moving averages (DMAs). (traded as low as 24.8%)AT200 = 40.0% of stocks are trading above their respective 200DMAsVIX = 27.8 (traded as high as 31.1)Short-term Trading Call: neutral (changed from cautiously bearish) Stock Market Commentary For a brief moment the entire … Read more
AT40 = 83.8% of stocks are trading above their respective 40-day moving averages (DMAs) (6th overbought day)AT200 = 34.4% of stocks are trading above their respective 200DMAs (near 2-month high)VIX = 16.1Short-term Trading Call: neutral Commentary Starting in November or so, I developed an expectation for a January sell-off based in anticipation of earnings warnings … Read more