ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
While the euro catches all the headlines about its tremendous slide against the U.S. dollar, the British pound has followed closely behind. The pound has lost 12% against the U.S. dollar since its January peak while the euro has lost 18% in that same time. The pound has lost 15% since its post-recovery peak in … Read more
(This is a guest post written by “Chenzo” of forexcharts.net) If any lesson was clear during the past few turbulent weeks of trading, it was that our markets are more closely entwined than ever. Perhaps this is a sign of our continuing globalization path, but the waves created by any financial event are traveling across … Read more
(This is a adapted repost from Inflation Watch) Bank of England (BoE) Monetary Policy Committee Member Adam Posen tells CNBC in an interview (see below or click here) that stubbornly high inflation is keeping the Bank of England members up at night. However, Posen prefers this situation to deflation (as all central bankers would). Slack … Read more
The Australian dollar has been my single source of greatest pain during this market correction. I have long favored the Australian dollar as a play against the U.S. dollar. Even as the U.S. dollar index has rallied over 10% since hitting 16-month lows in November/December, the Australian dollar remained flat during most of that time … Read more
For 14 months the S&P 500 has trended upward from the March lows. However, with the S&P 500 now down 3.9% for the year, the last 8 of these 14 months have produced no net gain in the index. Another 3% drop will produce the first lower low on the index since July, 2009. The … Read more
For four days, the Swiss franc held all-time highs against the euro (all-time lows of 1.40 for EUR/CHF). As the euro continued to decline against the U.S. dollar, I positioned (twice) in anticipation of a violent break of this support level. As the apparent support continued to hold, it increasingly appeared that the Swiss National … Read more
It has been such a long time since I have seen the Fast Money crew on CNBC so uniformly fearful and wary about the stock market that I had to scribble a quick post on it as a bookmark for future review. The show’s sentiment is very consistent with the confluence and convergence of technical … Read more
Last week, I claimed that the deeply oversold conditions presented a short-term buying opportunity, but that the downward trend in the percentage of stocks trading above their respective 40-day moving averages (DMAs) and 200DMAs (T2108 and T2107) pointed to a steadily weakening market in the near future. I expected sellers to step up at the … Read more
Currencies swung wildly and dramatically yesterday. Lost in the breathless descriptions of the continued surge in the US dollar and the sudden strength in the Japanese yen is that the drama really began with renewed strength in the Swiss franc. At around 5am Eastern, the franc suddenly surged against all currencies. In particular, it traded … Read more
On April 1, 2010, the Swiss National Bank (SNB) apparently intervened to arrest the appreciation of its currency against the euro, and I wondered whether this action would be as futile as all the other interventions this year. So far, so good for the SNB, as the previously persistent buyers of Swiss francs have all … Read more