ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
AT40 = 67.2% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 65.1% of stocks are trading above their respective 200DMAs VIX = 10.8 (volatility index) Short-term Trading Call: bullish Commentary The French Fly continued apace as financial markets continued to celebrate. In my previous post, I failed to post a … Read more
AT40 = 47.2% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 60.1% of stocks are trading above their respective 200DMAs VIX = 14.9 (volatility index) Short-term Trading Call: cautiously bullish) Commentary The S&P 500 (SPY) ended last week on a sour note. The index hit its first 42 trading day … Read more
The list of asset prices that have completely reversed their post-election gains continues to expand. Last week, iron ore officially joined that list…and the sell-off continues apace. On Tuesday night, April 18th, Business Insider reported: “According to Metal Bulletin, the spot price for benchmark 62% fines fell 4.6% to $63.20 a dry tonne, extending its … Read more
Last week, I noted that silver speculators returned to “maximum bullishness” but warned… “Just like the plunge on March 2nd, the key for SLV is the follow-through. On March 3rd, a small relief rally fell short of 200DMA resistance; two days later SLV gapped down on its way to a 50DMA breakdown. I am guessing … Read more
Australia just celebrated setting a (modern era) world record for the longest string of quarters without a recession. Yet Australia’s economic backdrop appears to be wavering. This week’s labor force survey could provide a critical point of relief or pile on yet more concern. Iron Ore’s Latest Plunge I begin with iron ore – Australia’s … Read more
AT40 = 46.9% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 62.0% of stocks are trading above their respective 200DMAs VIX = 12.9 (volatility index) Short-term Trading Call: cautiously bullish (notable caveats explained below) Commentary The timetable for a May end to this period of extremely low volatility looks like … Read more
Do not tell silver speculators that the Federal Reserve is tightening monetary policy. The latest CFTC Commitments of Traders (CoT) report showed that silver speculators ran net long contracts to a new high, levels not seen since at least 2008. The increase in open interest confirmed the bullishness of silver speculators. Source: Oanda’s CFTC’s Commitment … Read more
AT40 = 36.8% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 57.8% of stocks are trading above their respective 200DMAs VIX = 13.0 (volatility index) Short-term Trading Call: neutral Commentary Imagine that, the S&P 500 (SPY) found buyers to defend support at its 50-day moving average (DMA). The NASDAQ (QQQ) … Read more
Last week I registered my surprise at silver speculators rushing to increase net long contracts to near multi-year highs. This move happened ahead of what was expected to be a parade of Fed-speak clearing the path for a March rate hike. The surge stood out even more given gold’s surge did not bring net long … Read more
AT40 = 43.3% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 60.5% of stocks are trading above their respective 200DMAs VIX = 11.9 (volatility index) Short-term Trading Call: neutral Commentary Times like these really put AT40 (T2108), the percentage of stocks trading above their respective 40-day moving averages (DMAs), to … Read more