ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
As fears quickly rise that President Obama wants to wipe out American business and kill the stock market (as some like Jim Cramer would have you believe), I took a trip down memory lane to watch Obama’s (now forgotten?) famous call to buy the stock market right around the March bottom: Less than 12 months … Read more
China Economy – Jim Chanos: China's Real Estate Bubble Is Unprecedented – CNBC The bubble in China's real estate is unprecedented and companies exporting for the country's construction sector should be watched carefully, James Chanos, president and founder of Kynikos Associates, told CNBC Monday. (tags: bubbles China real_estate) Obama to seek 3-year freeze on US … Read more
VIX and More: VIX Spike of 35% in Four Days Is Short-Term Buy Signal …from a timing perspective, a long SPX position entered after a 35% spike will generally perform best over the course of a five day time horizon. (tags: volatility VIX trading_strategy)
On Friday, the S&P 500 broke down below the 50-day moving average (DMA) on high volume and volatility spiked over 50% during two days of heavy selling (charts at the end of this post). The S&P 500 has been here before. Since the March lows, this is the… Fourth break below the 50DMA: previous breaks … Read more
Taxing Wall Street Down to Size – NYTimes.com The banking system has become an agent of destruction for the gross domestic product and of impoverishment for the middle class. (David Stockman, a director of the Office of Management and Budget under President Ronald Reagan) (tags: banking banks tax_policy)