ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The honeymoon seems already over for the new governor of the Central Bank of the Republic of Turkey (CBRT). After the promotion of Murat Uysal to governor of the CBRT, I concluded the Turkish lira would weaken. That weakness lasted all of one day, and the lira proceeded to bounce around in a range. Next … Read more
Bitcoin (BTC/USD) made a major peak on June 26th. Since then, the cryptocurrency has pivoted around its 50-day moving average (DMA). Three breakdowns of that line of support have been met with buyers which suggests to me that Bitcoin is consolidating a launchpad for imminently higher prices. The Google Trend Momentum Check (GTMC) supports my … Read more
AT40 = 26.1% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 40.3% of stocks are trading above their respective 200DMAs (2-month low)VIX = 22.1Short-term Trading Call: neutral (caveats below!) Stock Market Commentary When the S&P 500 (SPY) bounced away from the oversold threshold last week, it left behind an extreme … Read more
AT40 = 30.4% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 44.9% of stocks are trading above their respective 200DMAs VIX = 20.2 (the day before it closed at 24.6 and a 7-month high)Short-term Trading Call: neutral (caveats below!) Stock Market Commentary Almost Oversold I underestimated the market’s readiness to … Read more
The Extreme: Best Buy Regular readers know that my favorite trades come on the heels of extremes in financial conditions. After President Trump announced a 10% tariff on $300B of Chinese imports, I saw a lot of extremes that made me sit up and take notice. One of the biggest extremes occurred in the shares … Read more