ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
I thought it would be fitting to close out another year of blog posts to celebrate the performance of one of my favorite investments: the Australian dollar. Despite beginning the week with another round of tightening by Chinese monetary authorities, the Australian dollar put on another stellar show. The “Aussie” closed the week up over … Read more
Bond market may signal US financial crisis to come – Bill Fleckenstein I am becoming more convinced that the various elements of a funding crisis will be picking up the pace and intensity sooner, rather than later, and they may well be the most important factors to consider with regard to investment decisions in 2011. … Read more
Last week, I claimed that the market is not yet overbought and that any corrections in the short-term will most likely be shallow. Without some specific and new catalyst, traders and investors, especially the ones who missed this latest rally, will treat pullbacks as golden buying opportunities. Moreover, I noted how, as expected, many analysts … Read more
I have seen and heard several headlines pronouncing that the market is overbought, extremely overbought even. Yet, my favorite oversold/overbought indicator, T2108, the percentage of stocks trading above their respective 40-day moving averages (DMAs), has calmly churned around 60% for almost the entire month of December. The market is typically considered overbought after T2108 crosses … Read more
Another earnings-related presentation, another yawn from the stock market – such is the life of First Solar (FSLR). On December 14, First Solar hosted a conference call to discuss its guidance for 2011. Overall, it was a relatively bullish call. However, the stock had rallied over 10% into the call and, presumably, expectations were high. … Read more