ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Maybe it is fear of the Fed, maybe it is the distraction of cryptocurrencies reaching for infinity. Whatever the issue, speculators in precious metals are in rapid retreat as net long contracts dropped to levels not seen in 4 to 5 months. Source: Oanda’s CFTC’s Commitments of Traders This decline represents the climax of October’s … Read more
A month ago, I wrote about the near seasonal pattern of speculators accumulating net long contracts in gold and silver from July troughs to October peaks. THIS year, the speculators started up on schedule but aborted the mission as net longs peaked well ahead of October. Source: Oanda’s CFTC’s Commitments of Traders So seasonal patterns … Read more
AT40 = 71.3% of stocks are trading above their respective 40-day moving averages (DMAs) – overbought day #2 AT200 = 58.6% of stocks are trading above their respective 200DMAs VIX = 9.5 Short-term Trading Call: bullish Commentary It looks like an overbought rally is truly underway. AT40 (T2108), the percentage of stocks closing above their … Read more
The market must be expecting an imminent rebound in the price of iron ore. Almost two weeks ago, I proposed a pairs trade going short Rio Tinto (RIO) versus long BHP Billiton Limited (BHP) as a way to play the top in the price of iron ore predicted by the Reserve Bank of Australia (RBA). … Read more
AT40 = 68.2% of stocks are trading above their respective 40-day moving averages (DMAs) (high of 69.4%) AT200 = 57.2% of stocks are trading above their respective 200DMAs VIX = 10.2 Short-term Trading Call: cautiously bullish Commentary In my last Above the 40 post, I noted how the stock market bent but stubbornly refused to … Read more