ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Central banks are getting pretty good at having it both ways. Despite two rate hikes, one in July and one in September, the Bank of Canada (BoC) has talked its way to a net no change in the Canadian dollar (FXC) versus the U.S. dollar (DXY0). Source: FreeStockCharts.com As the chart above shows, the Canadian … Read more
Against the U.S. dollar, the Mexican peso, USD/MXN, has left its 15-month low in the dust. For the past month, USD/MXN has neatly followed its upper-Bollinger Bands (BBs) straight through a bullish confirmation of a 50DMA breakout and then a bullish breakout above its 200-day moving average (DMA). Source: FreeStockCharts.com Most importantly, USD/MXN has now … Read more
AT40 = 63.5% of stocks are trading above their respective 40-day moving averages (DMAs) – ended 12 straight days overbought AT200 = 58.8% of stocks are trading above their respective 200DMAs VIX = 11.1 Short-term Trading Call: cautiously bullish (downgrade from bullish) Commentary Just when I thought it was safe to stay bullish, the stock … Read more
AT40 = 72.0% of stocks are trading above their respective 40-day moving averages (DMAs) – overbought day #12 AT200 = 60.1% of stocks are trading above their respective 200DMAs VIX = 9.6 Short-term Trading Call: bullish Commentary A week ago I described “lift-off” for an extended overbought period for the stock market. However, the market … Read more
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