ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Last week was full of important news for forex trading. As a dollar bull, euro bear, and yen bear, the week presented particular challenges that hedging could only soothe a little bit. I had a good run with these positions in recent weeks. As forex goes, a setback was due – just too bad the … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are … Read more
“The second question is on the euro exchange rate. Since the last large package of measures, it’s risen against the dollar and other currencies. How much of a concern is that? I know you don’t target the exchange rate specifically, but it’s an important economic factor. Does it say anything about the ECB’s ability to … Read more
Mario Draghi ALMOST got the language of infinite liquidity right this time around… The euro (FXE) approached the European Central Bank’s (ECB) March 10th press conference on monetary policy with high expectations. Even after getting burned in December’s Draghi Drubbing, the currency market “felt” prepared to accept that ECB President Draghi had learned the lessons … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on December 7, 2015. Click here to read the entire piece.) Mario Draghi, President of the European Central Bank (ECB), apparently decided not to follow the now well-established playbook for steering markets nearly perfected by the Federal Reserve: Guide the market to … Read more