Market Structure Insights
July 31, 2024
What about the stock market can we believe? You can’t believe prices. At least, during the day. If you’re a trader, how do you know if the price will move favorably? Yet prices are the core ingredient of technical signals, and the way we value...
July 24, 2024
Vice President Calvin Coolidge assumed the Presidency of the United States on the death of President Harding and completed that term and was then elected President and declined to run for a second term. That decision to run once isn’t the only reason Cool Cal...
July 17, 2024
The Dow Industrials gained 742 points yesterday. Randomly. The rest of the market was pedestrian. The trouble for issuers and investors alike is the comparisons. Why is this thing up and that thing down? There’s a luminous scene in the book Thirteen Moons by Charles...
July 3, 2024
There’s a moat between haves and have-nots in the stock market. The S&P 500 Equal Weight Index that treats the 500 components the same is up 0.5% through yesterday versus Dec 31, 2021. Cumulative inflation over that time is 13%. So the equality index is...
June 26, 2024
Why are the Nasdaq and the Dow Jones Industrial Average diverging wildly? It might resolve in the next few days. But it’s not small. Back up to June 20 and performance was aligned. At one point Monday, five-day divergence was more than 4%. The DJIA...
June 5, 2024
Somebody pulled a pin and dropped a grenade in the stock market and nobody noticed. Let me explain: Now, there were explanations. Index options on the SPX expired at month-end as they do every last trading day of the month, and MSCI indices rebalanced. But...