ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Financial stocks as a group topped in October. The recent surge in selling volume on XLF, the Financial Select Sector SPDR, has dragged prices to a critical support level. The chart below shows the XLF is teetering on the edge of a 6-month trading range. XLF is also testing its 200-day moving average (DMA) (this … Read more
Last week, I suggested that T2108 was at such low levels that the next spike in the VIX would represent a major buying opportunity. Sure enough, the VIX printed only its second higher high of the entire rally off the March lows and buyers rushed immediately into the market (put sellers probably also rushed in … Read more
European Central Bank in a Squeeze – CNBC Whether he likes it or not, Jean-Claude Trichet is not just the president of the European Central Bank. Mr. Trichet, 67, is also the de facto president of Europe, at least for the 16 nations that rely on the euro as their common currency. (tags: Europe ECB … Read more
On Friday, Nightly Business Report’s Susie Gharib interviewed Thomas Hoenig, President of the Federal Reserve Bank of Kansas City. Gharib focused on Hoenig’s objection to the latest Federal Reserve statement on monetary policy. Hoenig basically explained that he wants the Fed to adopt a flexible policy stance now that the economy appears to be recovering: … Read more
U.S. Senate Committee on Environment and Public Works :: Hearings : (Jan 28, 2010) Senator Barbara Boxer (D-CA), Chairman of the Senate Committee on Environment and Public Works, and Senator Bernard Sanders (I-VT), Chairman of the Subcommittee on Green Jobs and the New Economy, will convene a joint hearing to examine the efforts to reduce … Read more
Interest Rates: Bank of England Takes a Break from Printing Money The Bank of England put a hold on its unprecedented 200 billion pound asset-buying programme for the first time in 11 months on Thursday, but left the door open for more so-called quantitative easing if the economy relapsed. (tags: United_Kingdom BankofEngland monetary_policy)
Toyota’s stock first broke down in late November when it plunged below the 200-day moving average (DMA) for the first time since 2007. Unlike 2007, this technical break led to a sharp rally and not a sustained sell-off. (At the time, I suggested a counter-trend rally was likely, especially if the yen weakened; but I … Read more
The inverse correlation between the U.S. dollar and the stock market has snapped back into play with a vengeance since the 15-month closing highs for the S&P 500 set on January 19th. On that day, the dollar index rose for a second day, forming what was to become the bottom of a small pullback in … Read more
It appears even gold remains caught up in the carry trades that have supposedly kept commodities aloft for months. Gold plunged almost 4% along with a deep sell-off in the general market. As the market suddenly cared again about the prospects for sovereign defaults all over Europe, traders and investors dumped gold – and almost … Read more
U.S. criticizes Japan's latest 'clunkers' plan | The Detroit News U.S. Trade Representative Ron Kirk said Japan's decision to use EPA "city" mileage ratings instead of EPA "combined city/highway" mileage ratings as the basis for determining eligibility sharply limited the number of U.S. models that will qualify under the program in the world's third-largest auto … Read more