ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
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