ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
After the stock market’s sharp rally off the March, 2009 lows, most solar stocks stopped appreciating by that summer. For the remainder of the year, they experienced wild swings up and down in price in quick succession. In the summer of 2010, it appeared prospects had finally turned around for the better for solar stocks … Read more
Rallies in solar stocks would be more exciting if they were not so fleeting. In early September, I noted a “stealth rally” was underway in solar stocks. In early October, I wrote breathlessly about a “soaring September” for solar stocks. Just three weeks later I had to warn that selling volume was picking up in … Read more
After the stock market finally tumbled from overbought conditions, I concluded that “…hope remains for bullish wishes, but all the warning signs are tilting comfort levels to the bears.” Bears are now making themselves feel right at home. On Tuesday, the S&P 500 lost 1.6% on higher than average volume, creating the kind of strong … Read more
Germany's unspoken plan: A smaller euro zone – The Globe and Mail If Germany insists that investors in sovereign euro zone bonds share the pain in the future, why would these investors buy such risky bonds? Why lend to Greece, Ireland or Portugal when those sovereigns come back to the market in 2013, begging for … Read more
U.S. dollar once again at an all-time low (as measured by the Real Broad Dollar Index) – Calafia Beach Pundit This chart is arguably the best measure of the dollar's value relative to other currencies. It compares the dollar to a large basket of trade-weighted currencies, and it is adjusted for relative inflation differentials. This … Read more