ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The iShares MSCI Brazil Index Fund ETF (EWZ) broke out in early September, 2010 from an important downtrend pattern. At the time, I lamented that I missed the move because I was still playing the strategy of waiting for a 20% correction in EWZ before making a purchase. On Friday, EWZ completed a roundtrip from … Read more
When Ener1 (HEV) chairman and CEO Charles Gassenheimer appeared on CNBC in November to discuss how his company will benefit from Democrat and Republican cooperation on energy policy, the stock got a nice 4% pop on the day. Last week, HEV announced a major joint venture deal with China’s number one automotive components company Wanxiang … Read more
On Monday, Goldman Sachs added First Solar (FSLR) to its conviction buy list with a $165 price target. The market’s response was swift with FSLR ending the day up 6% and a closing price of $156.40. I wish I had received the memo because I sold off the last of my FSLR positions on Friday. … Read more
The “cooling off” of silver and gold has unfolded very slowly over several months. On Thursday, this process entered yet another phase. This time, silver made a clean and strong break below its 50-day moving average (DMA). Silver even made its first lower low since the latest rally began in late summer. Gold has spent … Read more
Currency traders appeared very disappointed that the Bank of Canada left interest rates unchanged on Tuesday. The Canadian dollar (“loonie”) immediately bounced sharply from near three-year highs against the U.S. dollar, and the USD/CAD eventually popped over parity (1.0) for the first time in two weeks on Thursday. The accompanying statement suggested that the Bank … Read more