ONE-TWENTY TWO: Trading Financial Markets
Since the year 2000, delivering a different narrative for students and fans of financial markets: stocks, options, currencies, Bitcoin, and more…
Stock Market Commentary The stock chickens have come to roost on declining market breadth. The stock market indices still generally appear fine, but an ever growing swath of individual stocks have fallen further and further behind. Last week in particular, sellers delivered an extended beating on individual stocks. The signs of waning confidence in the … Read more
Stock Market Commentary The S&P 500 (SPY) finally broke down and succumbed to the selling pressure building up in the stock market. A “surprise” surge in inflation as measured by the Consumer Price Index (CPI) delivered the headline catalyst for a day of broad-based selling. Given market breadth was already in the process of narrowing, … Read more
The stock market has enjoyed overbought trading conditions for the last 13 trading days and 14 of the last 15. I consider the stock market overbought when AT40 (T2108), the percentage of stocks trading above their respective 40-day moving averages (DMAs), trades above 70%. Overbought periods are times of mixed feelings. The stock market tends … Read more
Stock Market Statistics AT40 = 67.8% of stocks are trading above their respective 40-day moving averages (DMAs) (high of 75.1%) AT200 = 63.6% of stocks are trading above their respective 200DMAs (near 3-year high and breakout above post financial crisis downtrend) VIX = 25.8 (as low as 22.4) Short-term Trading Call: neutral Stock Market Commentary … Read more
The week started with key support at the 50-day moving average (DMA) giving way for the S&P 500 (SPY). The meltdown started into a crescendo today with 50DMA breakdowns across indices. The selling was swift enough to drive my favorite technical indicator close to oversold levels. AT40 (T2108), the percentage of stocks trading above their … Read more
The stock market convincingly followed through on last week’s bullish divergence that indicated strengthening stock market breadth. At the time of the bullish divergence, AT40 (T2108), the percentage of stocks trading above their respective 40-day moving averages (DMAs), powered higher even as the S&P 500 (SPY) lost 1.0%. The index also suffered a 50DMA breakdown. … Read more
Stock Market Statistics AT40 = 42.5% of stocks are trading above their respective 40-day moving averages (DMAs) (2-month low)AT200 = 42.1% of stocks are trading above their respective 200DMAs (2 1/2 week low)VIX = 31.5Short-term Trading Call: cautiously bearish Stock Market Commentary The swift stock market sell-off took a fresh turn for the worse. AT200 … Read more
Stock Market Statistics AT40 = 76.1% of stocks are trading above their respective 40-day moving averages (DMAs) (6th day overbought)AT200 = 46.3% of stocks are trading above their respective 200DMAs VIX = 22.1Short-term Trading Call: cautiously bullish Stock Market Commentary While the politicians in Washington D.C. play a game of chicken with the economy, the … Read more
Stock Market Statistics AT40 = 58.8% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 30.8% of stocks are trading above their respective 200DMAs VIX = 27.8Short-term Trading Call: neutral Stock Market Commentary I anticipated a shallow sell-off for a downward resolution to the bearish divergence in the stock market. However, … Read more
Stock Market Statistics AT40 = 43.8% of stocks are trading above their respective 40-day moving averages (DMAs) (hit a 2 1/2 – month low the previous day at 34.9%)AT200 = 26.0% of stocks are trading above their respective 200DMAs VIX = 27.3Short-term Trading Call: neutral Stock Market Commentary A strange and two-speed market got even … Read more