ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
I have often wondered whether Germany’s initial reticence to help the Eurozone solve its debt problems was “engineered”, in part, to devalue the euro from its suffocating highs in 2009. We will likely never know for sure, but the euro’s remarkable slide in 2010 has apparently generated impressive economic results, especially in Germany. There is … Read more
It took a little patience, but the bounce from oversold conditions delivered in spectacular fashion on Wednesday with a 3.1% jump. The setup this time was a “bullish hammer” that formed ahead of the U.S. unemployment report last Friday. This is how I described the setup at the time: “The good news is that the … Read more
“Commodity prices are off their peaks but those most important for Australia remain at very high levels, and the terms of trade are approaching their peak of two years ago.” – Royal Bank of Australia, “Statement by Glenn Stevens, Governor: Monetary Policy Decision” (July 6, 2010) From Australia’s perspective, the global economy continues to bring … Read more
Evergreen Solar (ESLR) is a “penny stock” again. As the stock plunges to 8-year lows and toward all-time lows, it appears that the company will not survive this round of doubts in its viability. Note well that in the past, I have not had good things to say about ESLR: “ESLR remains the solar stock … Read more
If an asset bubble is characterized by accelerating euphoria as asset prices rise ever higher, gold is still not in a bubble. The skepticism directed towards gold continues to rise along with its price despite gold marking all-time highs the past two months. I decided to do a refresh of last year’s sentiment analysis on … Read more
If the summer ends up trading in a range, it will have a wider berth than I had expected. This week the S&P 500 broke both closing and intra-day lows for 2010 and confirmed an unfolding downtrend. The index is down 8 of the last 9 days. The good news is that the S&P 500 … Read more
The first half of 2010 has ended and another earnings season is upon us. The second quarter should be a time of easy comparisons as the economy hit a trough leading into spring of last year. If there is any credence to the argument that the economy is on a sustainable path to recovery, we … Read more
The strength in the Swiss Franc has accelerated. Even as the euro has stabilized somewhat against the U.S. dollar the past two weeks, the franc continues to set new record highs against the euro. The monthly chart of the euro vs the franc (EUR/CHF) shows how rapidly the franc has gained steam just in the … Read more
The British pound has gained a modest 3.5% since early June when I removed my long-standing bearishness on the currency. The momentum in the pound accelerated somewhat after last Wednesday’s release of the Bank of England’s minutes showed Andrew Sentance dissented from the rest of his fellow central bankers by calling for a rate hike. … Read more
As Research In Motion’s stock (RIMM) plunged the last repurchase program underwater, I speculated that RIMM would initiate another share repurchase program if the stock continued to go lower. It now seems that Research In Motion (RIMM) is indeed determined to prop up its stock with its hard-earned cash. During tonight’s earnings call, RIMM announced … Read more