ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Over two weeks ago I officially ended my bearishness on the Australian dollar (FXA). I made that call just in time. Source: FreeStockCharts.com The Australian dollar has powered higher against almost all major currencies and now threatens to retard the economy’s on-going adjustment away from mining investment. The Reserve Bank of Australia has consistently noted … Read more
AT40 = 61.9% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 59.8% of stocks are trading above their respective 200DMAs VIX = 9.9 (volatility index) Short-term Trading Call: cautiously bullish Commentary The S&P 500 (SPY) closed effectively flatline with a point and a half gain. The NASDAQ returned to the … Read more
AT40 = 63.2% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 59.5% of stocks are trading above their respective 200DMAs VIX = 9.5 (volatility index) (since 1990, only TWO days have been lower, both in December, 1993!) Short-term Trading Call: cautiously bullish Commentary The volatility index, the VIX, closed at … Read more
The Japanese yen (FXY) is the one major currency that has been notably weaker than the U.S. dollar for most of the past month. USD/JPY peaked in December, 2016, but it looks like the sell-off bottomed out in April. Source: FreeStockCharts.com This yen weakness has been particularly evident against strong currencies, like the euro (FXE), … Read more
A year ago, speculators accumulated net long contracts on gold that exceeded anything seen since at least 2008. Starting in late 2015, silver speculators set several such records with the latest set just three months ago. Now, speculators in gold and silver are in full retreat. Net longs seem headed for zero for both precious … Read more