ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
In the wake of the SEC’s charges of fraud against Goldman Sachs (GS), I recommended trying a pairs trade going short GS and long Deutsche Bank (DB). I was betting that either the SEC charges would blow over and DB would rebound sharply, or the gravity of the charges would intensify and GS would sell-off … Read more
Toyota (TM) may be a beneficiary of the yen’s recent losses against the U.S. dollar as well as some encouraging economic news. As the U.S. dollar bottomed at fresh 15-year lows against the yen on November 1st, Toyota’s stock ended its last swoon. On November 4th, TM gapped up and closed 3% higher on a … Read more
I have written several pieces discussing the likelihood of a dollar relief rally and now the increasing momentum of that rally. I recently concluded that the British pound’s break of technical support at the 50-day moving average (DMA) all but confirmed the dollar index’s imminent rendezvous with its 200DMA. However, in all these pieces, I … Read more
Sheila C. Bair – Will the next fiscal crisis start in Washington? Even as work continues to repair our financial infrastructure and get the economy moving again, we need urgent action to forestall the next financial crisis. I fear that one will start in Washington. Total federal debt has doubled in the past seven years, … Read more
I did not think the bulls could pull off an Act 2 defending the 50-day moving average (DMA) support on the S&P 500, but defend they did. Presumably, the stock market left behind fears of a Korean conflagration and an implosion of European sovereign debt in favor of encouraging economic news, like unemployment claims dropping … Read more