ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
In mid-April I wrote expecting EUR/CHF to finally return to the old 1.20 currency floor set by the Swiss National Bank (SNB) years ago. Two days later, EUR/CHF did indeed hit 1.20….for all of a few hot minutes. For almost the past three weeks, EUR/CHF has plunged all over again as political turmoil in Italy … Read more
A little over two weeks ago, I was just starting to concede that the likelihood of four Fed rate hikes in 2018 was trending in favor of the hawks. Last week, the rate on the 10-year U.S. Treasury fell back sharply and ended the week below the magic tripwire of 3.0% (starting Thursday). In parallel, … Read more
AT40 = 64.0% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 52.5% of stocks are trading above their respective 200DMAs VIX = 13.2 Short-term Trading Call: neutral Commentary The churn continues on the S&P 500 (SPY) while AT40 (T2108) loiters around just under its overbought threshold of 70%. The lethargic … Read more
When Lennar (LEN) reported earnings on April 4th the market’s reaction looked just like the refresher the market needed to get housing stocks going again. LEN soared 10.0% on the day. The deal looked sealed when LEN appeared to confirm the surge with another up day. LEN has suffered severe selling pressure ever since. Source: … Read more
GDPR, the European Union’s General Data Protection Regulation, rolls into effect starting May 25th. Expectedly, there is a flurry of media attention on this topic. One meme spreading quickly compares Google Trend searches for GDPR to pop music icon and diva Beyoncé. It turns out that GDPR is now so popular that it surpassed Beyoncé … Read more