ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The latest CFTC data on the Commitments of Traders (CoT) shows some important moves in the positioning of speculators. Australian dollar (FXA) While the price of iron ore plunged, bullishness on the Australian dollar (FXA) remained surprisingly strong. I am almost equally surprised to see this bullishness now in full scale retreat as iron ore … Read more
I am surprised Fed futures traders still firmly expect a rate hike from the U.S. Federal Reserve in June. Source: CME FedWatch Tool After the stock market sell-off in the wake of more Trump turmoil, the market pegged the odds of a June rate hike from the U.S. Federal Reserve at 64.6%. Above 50% means … Read more
The trade in silver just got even more interesting. For a few weeks, I wondered aloud why speculators were so stubbornly bullish on the precious metal, especially relative to speculators in gold. In my last post on silver, I noted how speculators were finally beating a hasty retreat. In the latest Commitment of Traders (CoT) … Read more
AT40 = 54.4% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 59.4% of stocks are trading above their respective 200DMAs VIX = 10.6 (volatility index) Short-term Trading Call: bullish Commentary Two hallmarks of this current stock market have been the 1) consistent weakness of sellers and 2) the persistent ability … Read more
In recent weeks I have wondered aloud why silver speculators were so bullish. In the latest Commitment of Traders (CoT) data it appears speculators are finally asking themselves the same thing. Source: Oanda’s CFTC’s Commitments of Traders In just two weeks, the level of net long futures contracts on silver have gone from levels not … Read more