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 7, 2012. Click here to read the entire piece.) The day before the 2012 U.S. Presidential election, the U.S. dollar (UUP) climbed above its 200-day moving average (DMA), a critical resistance that I assumed it could not crack in the … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on October 17, 2012. Click here to read the entire piece.) Consol Energy (CNX) is the U.S.’s largest producer of coal from underground mines. {snip} The charts below show how CNX recently broke out and how it has traded relative to its … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on October 11, 2012. Click here to read the entire piece.) When the Federal Reserve promises to print money for an indefinite amount of time, it seems obvious to put trashy cash into assets that cannot be so easily manufactured. This shift … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on September 25, 2012. Click here to read the entire piece.) After the Reserve Bank of Australia (RBA) released its monetary policy statement on September 4th, I noted how the loudest part of the statement was left unsaid. The RBA raised no … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on September 16, 2012. Click here to read the entire piece.) For those who have paid attention to the words of Federal Reserve Chairman Ben Bernanke, it is no surprise that money-printing continues to be the response to persistently poor economic performance. … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on September 17, 2012. Click here to read the entire piece.) I am still working on a revision for the commodity crash playbook to take into account the new QE3 regime, but the trading action is already moving faster than I can … Read more
I watched Autozone (AZO) this morning stage another incredible comeback from post-earnings selling. In pre-market trading, AZO was down over 3% around $345. By the time trading opened, AZO rushed out the gate at $355. While it looked like a bottoming move, I failed to give the trade a try (with a stop below the … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on September 16, 2012. Click here to read the entire piece.) Last week, I demonstrated how the timing of QE2 provided a useful reference point for buying Freeport-McMoran (FCX) as part of a coming revision of the commodity crash playbook. In this … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on September 10, 2012. Click here to read the entire piece.) {snip}…I want to demonstrate how well last year’s playbook has worked for Freeport-McMoRan Copper & Gold Inc. (FCX) (so far!). One of the rules from the playbook states: “QE2 (the second … 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