ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
At the time of writing, currency markets opened trading this week with Brexit fear continuing to recede in the form of a big gap in favor of the British pound (FXB). Google Trends shows that on Friday, search interest in Brexit took a big step back (down 17%). This move confirms the apparent change in … Read more
The U.S. Federal Reserve failed to hike rates in its June policy meeting just as expected. More importantly, the Fed left alone its projection of the appropriate policy path for 2016 at 0.9%. The Fed trimmed its expectation for 2017 from 1.9% to 1.6% and slashed 2018 from 3.0% to 2.4%. The “long run” dropped … Read more
Earlier this month, I used Google Trends to demonstrate that the currency market lagged a key shift in Brexit sentiment. Just 10 days later, interest (aka anxiety?) in Brexit, the prospect of a UK exit from the European Union (EU), has scaled new heights while the British pound (FXB) has hit new lows for 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
Over the past two weeks or so, I have focused my currency trading on fading the British pound (FXB) and the Australian dollar (FXA). In “The Currency Market Is Lagging A Dramatic Shift in Brexit Sentiment,” I compared market sentiment versus the trading action and made the following claim (emphasis newly made): “If my interpretation … Read more