ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The Market Breadth Summary The Stock Market Indices Early in the week, the market looked ready to confirm a deeper bearish phase as market breadth broke down and selling accelerated. I felt validated in my bearish call for the first two days of the week. However, the bears quickly lost the narrative from there. Buyers … Read more
The Market Breadth Summary Stock Market Commentary There are no dips allowed in this stock market. A week ago, I labelled the trading environment as “buy-the-dips” because of the psychology of post-oversold trading. Those dips turned out to be hard to find. Only day traders could notice any weakness in the price action. The stock … Read more
The Market Breadth Summary Market rotation is improving participation, but a fresh warning from market breadth keeps me cautious. Small caps and defensives are attracting capital while tech weakness quietly undermines leadership. I remain neutral after AT50 reversed from overbought levels, issuing a fresh warning despite bullish index trends. The disconnect between strong indices and … Read more
Stock Market Commentary Last week delivered one of the most bullish one-day expansions of market breadth I have ever seen. On Friday, August 22nd, Federal Reserve Chair Jerome Powell spoke at the Jackson Hole confab and gave financial markets sufficiently dovish signals to reignite a rally that had waned most of the week. Big cap … Read more
Stock Market Commentary A curious break in the trading action unfolded as financial markets wrestled with two “disappointing” inflation reports. Both the CPI (consumer price index) and wholesale inflation (the producer price index or PPI) came in slightly higher than “expected” (headline and core). The data just tell me expectations are unrealistic or at best … Read more