ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
After reading the February 6th Address to the National Press Club of Australia by Philip Lowe, Governor of the Reserve Bank of Australia (RBA), I am not so sure the market “got it right.” The following statement alone was used to suggest that the RBA might cut rates in the near future: “Looking forward, there … Read more
AT40 = 83.8% of stocks are trading above their respective 40-day moving averages (DMAs) (6th overbought day)AT200 = 34.4% of stocks are trading above their respective 200DMAs (near 2-month high)VIX = 16.1Short-term Trading Call: neutral Commentary Starting in November or so, I developed an expectation for a January sell-off based in anticipation of earnings warnings … Read more
The Bank of Canada released its latest pronouncement on monetary policy on the heels of a rapid rally for the Canadian dollar (FXC). USD/CAD was down 5 straight days going into the release of the January, 2019 Monetary Policy Report. Four of five of those days delivered substantial declines. The Bank provided a truncated summary … Read more
AT40 = 20.4% of stocks are trading above their respective 40-day moving averages (DMAs) (ended 13 days in oversold territory)AT200 = 14.9% of stocks are trading above their respective 200DMAsVIX = 21.4Short-term Trading Call: bullish (with caveats all over again) Commentary All oversold periods must end – it is just a matter of how and … Read more
In 2018, the Turkish lira experienced significant selling pressure. At one point in August, the currency went parabolic. USD/TRY gained as much as 34% in just three trading days from August 8th to the 12th. On August 13, 2018, the Central Bank of the Republic of Turkey (CBRT) responded with a laundry list of measures … Read more