ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
We hear the relationship claimed so casually and so frequently, we probably no longer give it a second thought. For example, on December 30th, the S&P 500 (SPY) lost 0.7%. Searching for an explanation, CNBC ran the all-too familiar headline “Dow closes down triple digits as oil slide weighs.” Oil lost 3.3% on the day … Read more
The U.S. dollar index ended 2015 on a strong note, but it has yet to develop any post-Fed momentum. Of the ten trading days following the rate hike from the U.S. Federal Reserve, the index has closed below that day’s intraday high five days. Notably, the intraday LOW of that day is still holding strong … Read more
Australia’s Department of Industry, Innovation and Science recently released its latest Resources and Energy Quarterly. As usual, I was most interested in the projections for iron ore and the Australian dollar. The Department has been over-optimistic in the past about iron ore. This time around, the Department slashed forecasts in what sounds like another disappointing … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on December 29, 2015. Click here to read the entire piece.) In mid-September, I wrote “LGI Homes Is Now A Bit Hot To The Touch.” LGI Homes (LGIH) is down 18% since then. LGIH also hit an all-time high on December 1st … Read more