ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
INTRODUCTION When I first picked up “Making Sense of the Dollar: Exposing Dangerous Myths about Trade and Foreign Exchange” by Marc Chandler, I thought it would unlock dark secrets explaining how and why the dollar has generally declined for the past ten years. I was disappointed to discover that Chandler is actually extremely bullish on … Read more
China orders retreat from risky assets – Telegraph China has ordered managers of its vast currency reserves to withdraw from risky dollar assets and retreat to core debt guaranteed by the US government, a clear sign that Beijing is battening down the hatches for fresh trouble on global markets. (tags: China currency monetary_policy) Bank [of … Read more
Hospitals Suffer as Health Care Legislation Stalls – NYTimes.com For the nation’s hospitals, at least, the cost of doing nothing in Washington translates into tens of billions of dollars each year in medical bills that go unpaid by patients with little or no insurance. (tags: health_care) As U.S. Struggles, Canada Worries About Housing Bubble – … Read more
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