ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Coffee prices have soared along with most other commodities over the past year and more. For example, the iPath Dow Jones-UBS Coffee Total Return Sub-Index ETN (aka JO) is up 70% since the end of 2009. The last earnings results from Starbucks (SBUX) demonstrated the stress from these higher coffee prices. The company slightly lowered … Read more
I did not think the dollar would test the critical multi-year support line this soon. I thought the prospects for an economic recovery that is looking stronger than in competing developed economies would be sufficient to give the dollar a helping hand up despite the Federal Reserve’s best attempts to keep grinding the currency into … Read more
The “cooling off” of silver and gold has unfolded very slowly over several months. On Thursday, this process entered yet another phase. This time, silver made a clean and strong break below its 50-day moving average (DMA). Silver even made its first lower low since the latest rally began in late summer. Gold has spent … Read more
The massive and historic floods in Australia have driven coal prices up. This is particularly important for steel since Australia exports 2/3 of the world’s coal used for making steel (coking coal). Steelmakers have already been struggling with increasing input costs, so the Australian floods are sure to pinch profits further. At the close of … Read more
The cooling process for gold and silver has moved slowly and deliberately. The first step featured a fight through parabolic upswings, especially for silver. The next step finally seems underway with the first break of primary (short-term) uptrends. Gold closed below its 50-day moving average (DMA) for the first time since August. Silver closed below … Read more