ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
A turn-around in a beaten down stock needs to start somewhere. In mid-September, I painfully put Jumia (JMIA) in the bearish column. The stock lost another 52% in just two months before finally bottoming. JMIA ended 2019 with a higher low and a higher high as part of a confirmed breakout above resistance at its … Read more
A Breakout and Reversal The price of cocoa has had a wild two months. Last month’s breakout quickly turned into a fade and an outright sell-off in December. The result for the iPath Bloomberg Cocoa SubTR ETN (NIB) is a complete reversal of the breakout, a return to the bottom of the previous consolidation range, … Read more
With a Partial Phase One Trade Deal apparently at hand between the U.S. and China, emerging markets look more interesting than ever. I am scouring the charts for entry points in related currency pairs. The South African rand looks particularly interesting. Against the U.S. dollar, the rand (USD/ZAR) created a double top from September, 2018 … Read more
AT40 = 67.8% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 58.8% of stocks are trading above their respective 200DMAs (13-month high)VIX = 13.7Short-term Trading Call: neutral Stock Market Commentary Overbought Overrules Times like these remind me of the significance of the overbought line. AT40 (T2108), the percentage of stocks … Read more
Bitcoin (BTC/USD) continues to provide great data points for using Google Trends to assess the sustainability of significant price movements. So many milestones have occurred in such a short period of time that I decided to name this process: the Google Trend Momentum Check or “GTMC” for short. The latest example of the GTMC occurred … Read more