ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
In last week’s edition of Forex Setup Week, I pointed to the “quiet” strength of the Swiss franc (FXF) with a particular focus on its trade against the euro (FXE) in EUR/CHF. Although the euro continued to weaken through the week, the franc did so as well. So now, EUR/CHF is essentially where it was … Read more
The U.S. dollar (UUP) is at 11-month highs. The dollar index is finally showing the strength many expected from the beginning of 2014 in anticipation of strong economic numbers and subsequent rate hikes. The chart above shows that the U.S. dollar index has been on a relative tear since bouncing off its QE3 reference price … Read more
Last week’s edition of Forex Setup Week featured three major trends: a looming breakdown in the British pound (FXB), a fresh 200-day moving average (DMA) breakout for the U.S. dollar over the Canadian dollar (FXC), and a resilient Australian dollar. The British pound did indeed fail its critical test against the U.S. dollar and broke … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on July 14, 2014. Click here to read the entire piece.) Employment picture remains lackluster On Friday, Statistics Canada painted another disappointing jobs picture for the country. Instead of the 20,000 additional jobs expected by the “consensus” for June, the Canadian economy … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on July 31, 2014. Click here to read the entire piece.) The U.S. dollar index (UUP) has increased steadily all of July. The dollar index has gained 2% month-to-date. This matches a similar gain from the dollar’s last low in early May … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on May 12, 2014. Click here to read the entire piece.) Ever since the Federal Reserve decision on monetary policy on March 19th, the Canadian dollar (FXC) has staged a strong recovery, increasing about 3.4% over that time. Canada’s weak employment report … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on April 7, 2014. Click here to read the entire piece.) There was a lot of action last week in the foreign exchange market. This piece is a quick update on how I have adjusted and/or maintained positioning in select currencies: the … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades are … Read more
Currency markets have been providing some excitement during the past several weeks. Some will ascribe it to lower liquidity, but I think that explanation is too easy. Major adjustments are likely underway in sentiment and positioning, so traders will do well to review charts on at least a weekly basis to assess the bigger picture … Read more