ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. To learn more about it, see my T2108 Resource Page.) T2108 Status: 21% and “almost” oversold. General Trading Call: Continue covering shorts. Add more small long positions. Commentary T2108 dropped to 21%, right on the edge of the official 20% oversold … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. To learn more about it, see my T2108 Resource Page.) T2108 Status: 37% and Neutral. General Trading Call: Hold. Cover some shorts. Commentary Looks like my switch back to bearish expectations proved timely as T2108 dropped to 37% and back into … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. To learn more about it, see my T2108 Resource Page.) T2108 Status: 42% and Neutral. General Trading Call: Hold. Identify some shorts to cover. Commentary Given that today was the stock market’s worst performance since August of last year, I should … Read more
The dollar index gained 0.75% on Friday as another phase of fears of Greece sent folks out the euro and into U.S. dollars. The 50-day moving average (DMA) has held as near-perfect support but Friday’s move has the shape of a bounce looking for follow-through. *Charts created using TeleChart: Follow-through from here, like a new … Read more
The dollar has been one of the weaker currencies amongst the major industrial trading partners. Thanks to coordinated intervention, the Japanese yen has managed to take over the mantle from the dollar in the race to the bottom. The weekly chart below shows that the dollar’s rally against the yen stopped cold as it approached … Read more
It appears that coordinated currency intervention has accomplished what unilateral intervention could not – initiate a sustained weakening in the Japanese yen. When the Bank of Japan promised “powerful monetary easing” I quipped: The wordsmiths were working overtime. The BoJ clearly wants to fire as strong a warning as possible to those who insist on … Read more
NOW things get even more interesting for the U.S. dollar. In dramatic fashion, a tremendous surge in buying in the Swiss franc and the Japanese yen shortly after the close of the U.S. market on Wednesday set the dollar hurtling through its long-term support line. This break was long in the making and something I … Read more
Tuesday’s expected gap down and steady buyback created a LOT of amazing charts. Many stocks I have reviewed bounced with picture-perfect accuracy off key support levels like 50DMAs and 200DMAs. The chart of the dollar index also caught my attention (as it so often does). For the past two days, the U.S. dollar has clung … Read more
The Federal Reserve meets and decides monetary policy on Tuesday right in the middle of the most tumultuous time for global financial markets perhaps since the March, 2009 lows. As the Bank of Japan (BoJ) is furiously printing money to buttress its financial system and promote calm, I fully expect the Fed to issue a … Read more
Once again, long-term support has successfully held for the dollar. The options market revealed that players were moving in anticipation of this bounce, but some observers were caught trying to use fundamentals to explain the action. Since the payroll number was the biggest news on Friday, it seemed players were bullish on the dollar because … Read more