ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Speculators have remained overwhelming bullish on the Australian dollar (FXA) for almost two years. Last week, they made a quick switch to net bearish positioning. Net contracts went from 40,720 net long to 12,660 net short. Open interest fell from 157,029 to 105,270, so it appears that bullish speculators made a hasty retreat rather than … Read more
Buy the crash. Sell the all-time high. Rinse. Repeat. This has been a time-honored trading strategy for Bitcoin that, in hindsight, has offered a very low-risk way of profiting form the manic rise of Bitcoin. Today, the famed cryptocurrency was down as much as 30% before bouncing back with a furious rally. The trading strategy … Read more
Perhaps it is the pressure of having member companies whose stock trade on public markets. Perhaps it is a coincidental divide in politics. Whatever the explanation, the split in opinion on the impact of Republican tax reform on the housing market became even more stark this week as The National Association of Home Builders (NAHB) … Read more
The trading in recent IPO LongFin Corp. (LFIN) may go down as iconic in this era of frenetic trading in almost anything related to cryptocurrencies and blockchains. After debuting last Wednesday, December 13th at $5 and little to no fanfare, LFIN took off like a rocket two days later on the heels of news of … Read more
AT40 = 59.4% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 59.9% of stocks are trading above their respective 200DMAs VIX = 9.4 Short-term Trading Call: cautiously bullish Commentary The market fatigue I pointed out last week lasted just one more day. In the spirit of this relentless bull market, … Read more