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 November 2, 2012. Click here to read the entire piece.) This week featured two interesting speeches by Australian officials. On October 30, Philip Lowe, Deputy Governor for the Reserve Bank of Australia (RBA), gave a speech at the Commonwealth Bank Australasian … Read more
The Federal Reserve’s expressed desire for quantitative easing and Operation Twist has been to lower long-term interest rates. The response to the announcement of QE3 on September 13th has not yet generated lower interest rates except for a brief moment. The iShares Barclays 20+ Year Treasury Bond Fund (TLT) is one way to play long-term … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on September 3, 2012. Click here to read the entire piece.) “…the private sector’s revised outlook for the policy rate also appears to reflect a growing appreciation of how forceful the FOMC intends to be in supporting a sustainable recovery.” (Ben Bernanke … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on August 30, 2012. Click here to read the entire piece.) The residential housing industry received more positive data on August 29, 2012. First, the latest Federal Reserve’s beige book further confirmed the stronger price trends shown in the Federal Housing Finance … Read more
While writing about the attractive price of Pan American Silver (PAAS) and the seemingly imminent breakoout for silver (SLV), I neglected to note that SPDR Gold Shares (GLD) has already broken out from its extended downtrend. This move is of course inspired by Ben Bernanke’s Jackson Hole speech. At the same time the market anticipates … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on August 19, 2012. Click here to read the entire piece.) In 2010, the SPDR S&P Homebuilders ETF (XHB) rallied sharply only to peak in parabolic fashion in April. That Fall, I reaffirmed my belief that housing would bounce along the bottom … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are posted on twitter using the #120trade hashtag) T2108 Status: 24.4% (Last oversold period … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on May 20, 2012. Click here to read the entire piece.) I have written about my skepticism regarding the British pound’s newly found “safe haven” status (for example, see “Hard Currency: My Reactions To The Financial Times’ Promising Podcast“). During my last … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on May 15, 2012. Click here to read the entire piece.) So much for that bottoming process in ProShares UltraShort 20+ Year Treasury (TBT) that I noted two months ago (see “Looking Like A Bottom For TBT“). Interest rates are headed lower … Read more
Almost a month ago I made another case for a bottom in TBT, the ProShares UltraShort 20+ Year Treasury. The related breakout include some large, upward one-day moves. The churn included a convincingly successful retest of presumed support at the upper channel that formed the consolidation pattern for TBT’s bottom. Alas, that was not enough … Read more