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 After months of bearish market breadth, the downtrend ended with a surprising bullish divergence. The stock market quickly transitioned from a bearish to bullish divergence thanks to a rotation away from high tech and AI-related stocks and into small caps, consumer-facing stocks, and others. Micron Technology’s earnings … Read more
The Market Breadth Summary The Stock Market Indices Well, it had to happen. I did not know when, how, or just how bad it would be, but at some point the stock market had to cool off. This past week delivered a cooling of all coolings as bears decided to seize the narrative back from … Read more
The Market Breadth Summary Stock Market Commentary Last week was action-packed. Earnings dominated my focus, and the resulting trading action confirmed why it was important to ignore the bearish signals from market breadth last week. The market is as bullish as ever this year at the index level, even though market breadth still stains the … Read more
The Market Breadth Summary Stock Market Commentary A week ago, I made the case that a bottom was finally forming after five weeks of selling. The ceasefire announcement that was supposed to reopen the Strait of Hormuz let buyers run free and confirm that bottom. Wednesday’s resulting gap up created post-oversold trading conditions that tell … Read more
The Market Breadth Summary Stock Market Commentary Uncertainty is the theme for this market, extreme uncertainty in geopolitics, economic conditions, monetary policy, and domestic politics. The accumulated uncertainty has made the market war weary and exhausted buyers. This exhaustion dampens the potential for oversold conditions to deliver a meaningful bounce in the stock market. For … Read more