ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Europe bars Wall Street banks from government bond sales | Business | guardian.co.uk European countries are blocking Wall Street banks from lucrative deals to sell government debt worth hundreds of billions of euros in retaliation for their role in the credit crunch. (tags: Europe debt govt_spending GoldmanSachs) Governor Chris Christie’s Remarks to Mayors Chris Christie … Read more
It took a lot of patience, but Research In Motion Ltd. (RIMM) finally broke out yesterday above the $72 resistance level. The chart below summarizes the bullish technical set-up. *Chart created using TeleChart: RIMM fascinates because it is one of those stocks that attracts what I call “passionistas” – people with extremely strong and adamant … Read more
Talk of China giving up on dollar is nonsense: banker | Reuters Li Ruogu, chairman of Export-Import Bank of China, a lender tasked with supporting the country's foreign investments, said in a group interview that a collapse in the dollar's value would damage Chinese interests. China should focus instead on trying to stabilize the dollar … Read more
The stock market’s bounce from oversold conditions has been as impressive as almost all other such bounces over the past year. I noted in early February that several technical indicators were pointing to a buying opportunity. One of those indicators, the percentage of stocks trading above their 40-day moving averages (also known as “T2108“), is … Read more
Google (GOOG) has had a rough 2010. While the NASDAQ is up 1% for the year, GOOG is down 10%. Buyers have finally flocked to GOOG in the past week as the stock hit oversold levels, and the stock has perked up for the first time in 2010. (GOOG was one of several stocks I … Read more
Gold breaks the rules – MarketWatch "In a world where governments are openly devaluing their fiat currencies in an attempt to ease increasing stimulus debts and increase exports, central banks are figuring out the best way to preserve their wealth: the U.S. dollar and gold. Look for them to trade up together," (tags: gold U.S._dollar)
Interpreting the trading volume in options is typically difficult (I did an analysis in three parts last year). But I am most fascinated when a herd of speculators get caught leaning in the very wrong direction. This is what happened with IMAX. Schaeffer’s Research reported on heavy, bullish activity in the trading of IMAX options … Read more
Hedge funds raise bets against euro – FT.com Hedge funds are raising their bets against the euro amid growing fears of a regulatory backlash against their trading positions on the specific sovereign debt of Greece and other weak eurozone economies. (tags: euro hedge_funds Greece debt) U.S. Said to Tell Hedge Funds to Save Euro Records … Read more
No new news in the Bank of Canada’s decision to maintain its overnight rate target at 0.25% and to start increasing this rate at the end of next quarter. The Bank of Canada continues to lament the stubborn strength of its currency despite these rock-bottom rates: “…the persistent strength of the Canadian dollar and the … Read more
Major resistance has broken and trends are turning back up on the major indices, so it is time to consider more seriously the prospect of the market printing fresh highs on the year sooner than later. Yesterday, I examined Cummins (CMI) as one of several stocks that may indicate the market has sufficient buying power … Read more