ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
When a financial market gets expensive, traders and investors start broadening their search for low-price opportunities. As an overbought U.S. stock market hits the late stages of an impressive rebound from March’s crash, its stock market looks expensive. Meanwhile, “emerging market” currencies like the Turkish lira, South African rand, and the Mexican have barely started … Read more
The Canadian Dollar After the Canadian dollar (USD/CAD) sold off in the wake of the Bank of Canada’s latest Monetary Policy Report (MPR), I doubled down on my bullish bet on the currency (short USD/CAD). That bet paid off as general weakness in the U.S. dollar took USD/CAD back down to its 50-day moving average … Read more
The Bitcoin Price Breakout Bitcoin (BTC/USD) wiped away my wariness about the price action with one clean breakout that finished a reversal of March’s steep losses. For about five days, Bitcoin was teasing its way toward a challenge of overhead resistance at its downtrending 200-day moving average (DMA). During the previous day, Bitcoin gained about … Read more
Bitcoin (BTC/USD) has had an interesting – and surprising – relationship with the recent crash in financial markets. Bitcoin fell 39.1% on March 12th just as the crash was accelerating. The S&P 500 (SPY) continued to sell off for another week and a half after Bitcoin crashed. By the time the S&P 500 bottomed Bitcoin … Read more
Canadian Dollar After the Bank of Canada announced its latest update on monetary policy, the U.S. dollar gained about 1.7% on the Canadian dollar. I thought perhaps the Bank of Canada delivered some incredibly awful news. Nothing in the statement was a surprise. Indeed, the Bank of Canada essentially suggested it would not take rates … Read more