ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
(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
On October 28, 2015 (Australian time), the Australian dollar (FXA) was slammed by Australia’s September, 2015 inflation data. Source: FreeStockCharts.com The Australian Bureau of Statistics reported a 1.5% year-over-year increase in its Consumer Price Index (CPI) for September. While inflation is still hovering above the lows for the post-crisis period, this is the longest stretch … Read more
Last week, I updated the data on the Apple (AAPL) pre-earnings trade in a piece called “The Apple Pre-Earnings Trade: October, 2015 Edition – An Important Juncture.” I concluded that the main trade for AAPL going into earnings October 27, 2015 is to fade the 7-day average daily price change. Not including today (the 27th), … Read more
How easy it is to forget the bullishness that homebuilders have for the future. The Census Bureau reported disappointing new home sales data for September, 2015. The negative feel was further underlined by “consensus expectations” which turned out far too high. Single-family new home sales dropped 11% month-over-month. That SEEMS awful until you read further … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on October 26, 2015. Click here to read the entire piece.) Almost two weeks ago, markets appeared ready to price in a first Fed rate cut way out into June, 2016 (essentially neverland). The U.S. dollar index (UUP) sat at one of … Read more