ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
After the stock market’s sharp rally off the March, 2009 lows, most solar stocks stopped appreciating by that summer. For the remainder of the year, they experienced wild swings up and down in price in quick succession. In the summer of 2010, it appeared prospects had finally turned around for the better for solar stocks … Read more
Rallies in solar stocks would be more exciting if they were not so fleeting. In early September, I noted a “stealth rally” was underway in solar stocks. In early October, I wrote breathlessly about a “soaring September” for solar stocks. Just three weeks later I had to warn that selling volume was picking up in … Read more
After the stock market finally tumbled from overbought conditions, I concluded that “…hope remains for bullish wishes, but all the warning signs are tilting comfort levels to the bears.” Bears are now making themselves feel right at home. On Tuesday, the S&P 500 lost 1.6% on higher than average volume, creating the kind of strong … Read more
After 46 days, the stock market finally dropped out of overbought conditions. On Friday, T2108, the percentage of stocks trading above their respective 40-day moving averages (DMAs), plunged below the 70% overbought threshold all the way to 62.5%. The stock market had a historic run. These past 46 trading days created the sixth longest overbought … Read more
Another week, another extension of a historic overbought period in the S&P 500. Based on the closing performance of the stock market’s major indices, you probably would not guess that one of the stock market’s largest companies (Cisco) lost 16% on the day. If there was a day for the market to have an excuse … Read more