ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
“The slowdown in aggregate demand contributes to the fall in inflation. Yet, exchange rate movements due to recently heightened global uncertainty and volatility pose upside risks on the inflation outlook. The Committee decided to implement monetary tightening to contain adverse impact of these developments on expectations and the pricing behavior.” – The Central Bank of … Read more
A full seven months ago I speculated that “maximum yen bullishness” was reaching feverish levels. As a result, I concluded that a bottom had to be imminent in USD/JPY even as the momentum at that time seemed to point to that bottom happening around 7% lower at 100. I acknowledged the potential for making an … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on December 2, 2016. Click here to read the entire piece.) Before Thursday’s open for trading in the U.S. (December 1, 2016), the British pound (FXB) experienced another one of those “quick trigger” moves in reaction to Brexit-related headlines. I use “quick … 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 November 14, 2016. Click here to read the entire piece.) {snip} These quotes came from Mark Carney, governor of the Bank of England (BoE), in response to questions during the Q&A period of the November Inflation Report. I believe Carney reminded … Read more