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 Summary If you are asking where and when this AI-focused sell-off will end, you are asking the wrong question. Instead of asking for forecasts, the calm and disciplined traders and investors ask about managing risks while seeking opportunity. Thus, the main thing that changes within this framework is … Read more
The Market Breadth Summary The Stock Market Summary I have been making the case for months that the AI trade is topping. This last week’s price action added yet more confirmation. While the NASDAQ dropped 2% for the week, nine of the eleven S&P 500 sectors finished higher, led by healthcare, materials, and utilities. That … Read more
The Market Breadth Summary The Stock Market Summary The stock market finds itself in a place I did not fully anticipate, even as recently as my last market check-in. Market breadth is rebounding as I suspected it might, and the recovery increasingly looks like a bottoming process. Yet the recovery is leaving behind the once-dominant … Read more
The Market Breadth Summary The Stock Market Summary High tech stocks keep winning as AI leadership carries the sector and the headline indices, but market breadth keeps failing including a steep downtrend all month. In the prior week, the AI trade hit a short speed bump on AI safety concerns, but last week’s rally confirmed … Read more
The Market Breadth Summary: Punished The Stock Market Summary The Federal Reserve actually did it. America’s central bank channeled Kevin Warsh’s previous jawboning into an actual rate hike. The Fed’s first such move since 2023 was well-priced by the Fed fund futures market, but the stock market was initially caught off-guard. The rate hike punished … Read more