ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
It looks like speculators flipped the script to go net long on the British pound (FXB) just in time to catch a peak. Source: FreeStockCharts.com As the chart above shows, GBP/USD just broke down below support at its 50-day moving average (DMA). The move looks like an exclamation point following the full reversal of the … Read more
AT40 = 71.3% of stocks are trading above their respective 40-day moving averages (DMAs) – overbought day #2 AT200 = 58.6% of stocks are trading above their respective 200DMAs VIX = 9.5 Short-term Trading Call: bullish Commentary It looks like an overbought rally is truly underway. AT40 (T2108), the percentage of stocks closing above their … Read more
Speculators are net bullish on the British pound (FXB) for the first time in almost two years. Source: Oanda’s CFTC’s Commitments of Traders While the net long position is barely above zero, the flip of the script is still significant given how little time speculators have spent bullish on the pound since at least 2008. … Read more
The market must be expecting an imminent rebound in the price of iron ore. Almost two weeks ago, I proposed a pairs trade going short Rio Tinto (RIO) versus long BHP Billiton Limited (BHP) as a way to play the top in the price of iron ore predicted by the Reserve Bank of Australia (RBA). … Read more
AT40 = 68.2% of stocks are trading above their respective 40-day moving averages (DMAs) (high of 69.4%) AT200 = 57.2% of stocks are trading above their respective 200DMAs VIX = 10.2 Short-term Trading Call: cautiously bullish Commentary In my last Above the 40 post, I noted how the stock market bent but stubbornly refused to … Read more