ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
(This is an excerpt from an article I originally published on Seeking Alpha on October 28, 2012. Click here to read the entire piece.) The British pound (FXB) was falling fast going into last week’s GDP number. The pound even broke through support at its 50-day moving average (DMA). It seemed like momentum was setting … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on October 25, 2012. Click here to read the entire piece.) This week, the S&P 500 (SPY) has broken down, providing an early warning that QE3 is not working as expected. The S&P 500 is resting precariously at support formed by 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 highly 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 … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on October 23, 2012. Click here to read the entire piece.) It took a while, but the British pound (FXB) finally broke down against the U.S. dollar with a recent break below the 50-day moving average (DMA). Source: FreeStockCharts.com This breakdown is … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on October 10, 2012. Click here to read the entire piece.) The financial crisis of 2008/2009 ended a long-term downtrend in the U.S. dollar (UUP). Ever since then, the Federal Reserve has been unable to grease the skids sufficiently to get this … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on October 21, 2012. Click here to read the entire piece.) {snip} Since at least 2010, Governor Mark Carney has consistently warned Canadians that interest rates are abnormally low and must inevitably go up. However, Carney has also made it clear that … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on October 10, 2012. Click here to read the entire piece.) Just a few days after writing that the U.S. dollar’s post-QE3 rally was giving way to meandering, the U.S. dollar (UUP) surged back to the top of the recent relief rally … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on October 1, 2012. Click here to read the entire piece.) The major paper currencies have an on-going problem – many of the financial authorities in charge of preserving their “value” are actively trying to drive that value downward, jawboning for a … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on October 2, 2012. Click here to read the entire piece.) I expected the Reserve Bank of Australia (RBA) to stand pat on rates in its latest statement on monetary policy. Instead, the RBA cut rates by 25 basis points to 3.25% … Read more
In “How To Estimate Intraday Moves For The S&P 500 Using The Australian Dollar“, I quantified the relationship between the Australian dollar and the S&P 500 on an intraday basis. However, I did not provide any charts demonstrating the relationships. The chart below tracks the intraday relationships between SPY as a proxy for the S&P … Read more