ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The race to zero interest rate policies (ZIRPs) is reaching a climax. Australia: Reserve Bank of Australia On March 3, 2020, The Reserve Bank of Australia dropped its key interest rate 25 basis points (bps) from 0.75% to 0.5%, an all-time low for Australia. In doing so the RBA proclaimed the following in its statement: … Read more
This post is a quick addendum to the Above the 40 post I published just ahead of a complete freefall in global financial markets. At the time of writing, futures are showing a 5% drop in the S&P 500 (SPY)! The crash is reflected in real-time in the currency markets. I actively watch the Australian … Read more
AT40 = 9.4% of stocks are trading above their respective 40-day moving averages (DMAs) (8th oversold day)AT200 = 23.2% of stocks are trading above their respective 200DMAsVIX = 41.9Short-term Trading Call: bullish Stock Market Commentary The Shake and Bake bottom barely held as support last week. It was a week of dramatic ups and downs … Read more
First the good news. The iShares Dow Jones US Home Construction Index Fund ETF (ITB) lost 3.2% on Friday but bounced sharply from the lows of the day. That bounce preserved support at the uptrending 200-day moving average (DMA) and set the stage for a potential higher low that generates a lasting bottom. While, the … Read more
If there were ever a time for Bitcoin (BTCUSD) to soar, the Coronavirus-inspired sell-off in global financial markets should be that time. The cryptocurrency increased 6.7% this week, but that gain did not even finish reversing the last big down day on February 26th when the U.S. stock market dropped into oversold territory. BTCUSD is … Read more