ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
(This is an excerpt from an article I originally published on Seeking Alpha on August 2, 2012. Click here to read the entire piece.) On July 30th, the Australian dollar made a clean breakout against the U.S. dollar (FXA). At that time, I stated I was finally ready to reposition for what could be an … Read more
The Australian dollar is now at 4-month highs versus the U.S. dollar (FXA). In what now looks like a clean breakout, the AUD/USD currency pair has hurdled over the latest resistance level which was the April high. Source: FreeStockCharts.com While I continue to believe the Australian dollar has a big sell-off ahead of it once … Read more
(This is an addendum to the last T2108 Update that presented the case for an imminent, extended, overbought rally for the S&P 500). On Friday, July 27, the S&P 500 broke out in a rally that continues in grinding fashion from the June lows. In parallel, the Australian dollar (FXA) has also rallied from its … Read more
The trading action in forex is starting to pick up again with quickly changing setups. Of the many twists, the Australian dollar (FXA) continues to capture a lot of my attention. Currently, the Aussie looks ready to break out against the U.S. dollar. Source: FreeStockCharts.com AUD/USD is now positive again for the year, and, at … Read more
The U.S. dollar’s jagged rally from last year’s lows has finally brought it back to its “QE2 reference price.” At the same time, a carry trade seems to be lifting the Australian dollar in “risk-on” fashion. In the background, the Japanese yen is slowly but surely reasserting itself as the strongest of the major currencies … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on July 8, 2012. Click here to read the entire piece.) I have written several articles now discussing the dynamics of the Australian dollar as well as its correlation with the S&P 500 (SPY). At the end of May, I wrote “Correlations … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on July 6, 2012. Click here to read the entire piece.) The Australian dollar’s year-to-date performance against the U.S. dollar (FXA) is back to even. The leading “risk-on” currency has fought back from a large one month slide that featured losses of … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on July 3, 2012. Click here to read the entire piece.) In keeping interest rates at 3.50%, the Reserve Bank of Australia (RBA) issued a relatively mundane statement on monetary policy on July 3rd. This statement contained many of the same themes … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on July 1, 2012. Click here to read the entire piece.) Thanks largely to the surging euro, the U.S. dollar index (UUP) took one of its nastiest one-day tumbles since last October, falling 1.3%. I believe this drop all but confirms staunch … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on June 19, 2012. Click here to read the entire piece.) {snip} I was looking for confirmation of the increasingly bullish outlook, but I did not get it. In “Bearish Implications of A Rare Convergence of Extremes in Yen vs S&P 500 … Read more