ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Someone forgot to tell the Australian dollar that financial markets are in “risk on” mode. While the Australian dollar is still up for the year against the U.S. dollar, it continues to lag the S&P 500 (SPY) by a greater and greater distance. The Aussie is now up 2.6% versus the U.S. dollar whereas the … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on March 5, 2012. Click here to read the entire piece.) {snip}…this is a good moment to describe finally why I recently sold my long-term holdings in the Rydex CurrencyShares Australian (FXA). {snip} Never once have I pondered the possibility of the … Read more
Almost two weeks ago, I underlined the case for on-going weakness in the Japanese yen. The U.S. dollar had rallied to 80.60 against the yen (USD/JPY) in almost a straight line. I chose that point to close out my yen shorts to wait for what I thought would be an inevitable pullback from such a … Read more
On Tuesday (February 28), the British pound finally broke out against the U.S. dollar with a resounding surge above its 200-day moving average (200DMA). The struggle to break this resistance lasted the entire month of February. Despite this technical breakthrough, I remain skeptical that the British pound will deliver much follow-through before faltering again. Indeed, … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on February 24, 2012. Click here to read the entire piece.) Ever since I heard hedge fund manager Kyle Bass lay out a convincing case in August, 2010 for a massive sell-off in the Japanese yen, I have had a hard time … Read more