ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
AT40 = 64.0% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 54.8% of stocks are trading above their respective 200DMAs (a 4-month high) VIX = 12.0 Short-term Trading Call: bearish Commentary Once again, a tried and true bearish signal delivered. However this success came with a tremendous caveat: a simultaneously … Read more
The deconstruction continues in material stocks. The culprit this time around was a poor reading and interpretation of construction spending. Per AP News: “U.S. construction spending dropped 1.7 percent in March, the biggest setback in 11 months, with weakness in a number of sectors including the biggest plunge in home building in nine years. The … Read more
Two weeks ago I expressed concern about the poor performance of the materials sector. The sector was under-performing the general market which seemed particularly ominous given the generally strong outlook for the economy. At the time, I expressed my hope that another interview with Bill Sandbrook, CEO of U.S. Concrete (USCR), would clear the air … Read more
This picture is exactly what I do not want to see as the stock market struggles to hold critical technical supports: a major index of economically-sensitive stocks confirming a breakdown of support at its 200-day moving average (DMA). The Materials Select Sector SPDR ETF (XLB) lost 1.3% on a day when the S&P 500 (SPY) … Read more
AT40 = 14.6% of stocks are trading above their respective 40-day moving averages (DMAs) (day 2 oversold) AT200 = 31.4% of stocks are trading above their respective 200DMAs (near 2-year low) VIX = 29.1 (range from 27.7 to 41.1) Short-term Trading Call: bullish Commentary Friday’s classic battle between buyers and sellers delivered a (short-term?) market … Read more