ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The Good When Lennar (LEN) reported earnings on June 25th, the stock market responded with the kind of hesitation and whiplash symbolic of the seasonal topping pattern in place for home builders. The first reaction was celebratory as LEN gapped upward and rallied as high 3.6%. The initial reporting on LEN earnings focused on all … Read more
The week of trading in foreign exchange began with the shock announcement of a leadership change at the Central Bank of the Republic of Turkey (CBRT). Murat Uysal, the Deputy Governor since June 9, 2016, was promoted to Governor. Uysal replaced Murat Cetinkaya who had been Governor since April, 2016. Cetinkaya actively resisted calls from … Read more
AT40 = 68.0% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 55.1% of stocks are trading above their respective 200DMAs (essentially matches the 2019 high and is a new 10-month high)VIX = 13.3Short-term Trading Call: neutral (caveats below) Stock Market Commentary Good news is bad news….oops, nevermind The search for … Read more
Iron Ore Resistance Iron ore prices have been on a tear this year, and China’s steel mills are not going to take it anymore. According to Reuters: “…eight steel mills will create an investigation group, led by Baowu and assisted by the others, to look into the pricing methodology of imported iron ore, to coordinate … Read more
In the background of the growing euphoria in the U.S. over imminent rate cuts from the Federal Reserve is the growing weight of the steady descent of the economy in the eurozone. European Weakness The week started with the stock market’s first opportunity to respond to the declared truce in the trade war between the … Read more