ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
On July 1, 2011, Brett Arends wrote in MarketWatch a piece lambasting groupthink and crowd psychology in “Dominique Strauss-Kahn and your money; Commentary: Wisdom of the crowd comes into question yet again.” The article was an intriguing way to relate the rush to judge DSK in mass media in the absence of complete information to … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. To learn more about it, see my T2108 Resource Page.) T2108 Status: 70% and overbought. VIX Status: 16. General (Short-term) Trading Call: Close more bullish trades (longs), initiate new bearish trades (shorts). Commentary The S&P 500 closed the week with a … Read more
Greenspan on QE2, Greece and the Debt Ceiling (Fed's Massive Stimulus Had Little Impact) – CNBC The Federal Reserve's massive stimulus program had little impact on the U.S. economy besides weakening the dollar and helping U.S. exports, Federal Reserve Governor Alan Greenspan told CNBC Thursday…On Greece, Greenspan a default is likely…Greenspan was also pessimistic about … Read more
In mid-May, I warily eyed copper as it looked ready to lead the correction in commodity prices into a complete breakdown (see “Silver Fails Resistance; All Eyes on Copper’s Support“). However, over the past six weeks, copper prices have held firm by clinging to the 200-day moving average (DMA) line of support. Source: Stockcharts.com This … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. To learn more about it, see my T2108 Resource Page.) T2108 Status: 60% and neutral. VIX Status: 17. General (Short-term) Trading Call: Hold. Sell a few more longs and start identifying potential shorts. Commentary The current 4-day rally exhibits the kind … Read more