ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
By now, I think we should recognize that low-volume rallies simply do not last – the odds tend to favor a return of most, if not all, those kinds of gains, sooner than later. Last week, I was particularly puzzled by a low-volume 2.4% rally on the S&P 500 that came on the heels of … Read more
As I feared might happen, the stock market has already fallen back into oversold territory as measured by the percentage of stocks trading above their 40-day moving averages (DMAs). This indicator, T2108, dipped under 20% and closed at 18.5%. This is the third oversold period in just a month, and this third time is not … Read more
T2108, the percentage of stocks trading above their 50-day moving averages (DMA), hit 21% on Wednesday. This milestone finishes nine days of technically oversold trading conditions as defined by T2108 dropping to 20% or below. I am reposting below a chart of the historical distribution of durations for oversold periods as a reminder that the … Read more
(This is a guest post written by “Chenzo” of forexcharts.net) If any lesson was clear during the past few turbulent weeks of trading, it was that our markets are more closely entwined than ever. Perhaps this is a sign of our continuing globalization path, but the waves created by any financial event are traveling across … Read more
The stock market is now on day #6 of this oversold period and a powerful resolution to the upside is beginning to look less likely. Asia and Europe led off with powerful rallies. However, the U.S. follow-through stalled out and fell short. Although the indices faded hard and ended notably down, the percentage of stocks … Read more