ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
To-date, I have been extremely skeptical of the meme of four rate hikes in 2018. I thought that Thursday’s “weaker than expected” increase in the April consumer price index (CPI) would further confirm my skepticism. Instead, I discovered that the 30-day Fed Fund Futures are pricing in a 47.4% chance of a fourth rate hike … Read more
I heard commentary after the Fed’s proclamation on monetary policy on March 21st that the Fed is “one vote away” from 4 rate hikes this year. Yet, something strange happened along the way to over-speculation on the number of rate hikes in 2018: the traders putting their money on the line on the 30-Day Fed … Read more
New Federal Reserve Chair Jerome Powell had his say with Congress this week and some of the conventional financial media and pundits have been shrill with speculation about the potential for four rate hikes in 2018 as a result of Powell’s word choices and tone. This number of hikes is reportedly one more hike than … Read more
AT40 = 38.3% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 54.7% of stocks are trading above their respective 200DMAs VIX = 17.3 (28.5% increase!) Short-term Trading Call: bullish Commentary “We cannot tolerate pervasive and persistent misconduct at any bank and the consumers harmed by Wells Fargo expect that robust … Read more
AT40 = 57.0% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 58.8% of stocks are trading above their respective 200DMAs VIX = 10.2 Short-term Trading Call: cautiously bullish Commentary The stock market is looking a little tired. The S&P 500 (SPY) closed at another all-time high on Tuesday and at … Read more
AT40 = 56.7% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 57.5% of stocks are trading above their respective 200DMAs VIX = 10.4 (volatility index) Short-term Trading Call: cautiously bullish Commentary The Federal Reserve gave the permission to the stock market that I awaited…well, sort of. On Wednesday, June 14, … Read more
This is a quick note for readers. I am on hiatus through June 15th. Over this time, the Fed will issue its next proclamation on monetary policy on June 13th. The tone should be a key tell as to whether the current dip in tech should be bought aggressively and now or whether it should … Read more
Ahead of the May decision on monetary policy from the U.S. Federal Reserve, I concluded that the stars had aligned for a potential (sharp) relief rally for the SPDR® Gold Shares (GLD) and the iShares Silver Trust (SLV). In that post, I extrapolated from the market’s waning enthusiasm for two more rate hikes in 2017. … Read more
AT40 = 46.9% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 62.0% of stocks are trading above their respective 200DMAs VIX = 12.9 (volatility index) Short-term Trading Call: cautiously bullish (notable caveats explained below) Commentary The timetable for a May end to this period of extremely low volatility looks like … Read more
AT40 = 47.9% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 62.5% of stocks are trading above their respective 200DMAs VIX = 11.6 (volatility index) Short-term Trading Call: neutral Commentary The U.S. Federal Reserve hiked its interest rate as expected by 0.25%. The accompanying statement was remarkable only for being … Read more