ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. 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 posted on twitter using the #120trade hashtag) T2108 Status: 82% (sixth day of … Read more
This chart review pairs an ugly chart with a blooming one. Japan’s Nikkei stock market index made very little additional progress after the sharp and rapid bounce from the March lows marked a crescendo of panic over the Fukushima Daiichi nuclear catastrophe. On five separate days, the Nikkei survived tests of the closing lows from … Read more
It appears that coordinated currency intervention has accomplished what unilateral intervention could not – initiate a sustained weakening in the Japanese yen. When the Bank of Japan promised “powerful monetary easing” I quipped: The wordsmiths were working overtime. The BoJ clearly wants to fire as strong a warning as possible to those who insist on … Read more
NOW things get even more interesting for the U.S. dollar. In dramatic fashion, a tremendous surge in buying in the Swiss franc and the Japanese yen shortly after the close of the U.S. market on Wednesday set the dollar hurtling through its long-term support line. This break was long in the making and something I … Read more
Energy Dominoes From Japan | Alternative Energy Stocks Rising oil prices and increased attention towards the risks of nuclear energy in the ring of fire will increase alternatives to conventional energy production. As our mistaken assumptions about the security and sustainability of traditional energy sources fall like dominoes, alternative energy businesses become more and more … Read more
The Federal Reserve meets and decides monetary policy on Tuesday right in the middle of the most tumultuous time for global financial markets perhaps since the March, 2009 lows. As the Bank of Japan (BoJ) is furiously printing money to buttress its financial system and promote calm, I fully expect the Fed to issue a … Read more
Toyota (TM) may be a beneficiary of the yen’s recent losses against the U.S. dollar as well as some encouraging economic news. As the U.S. dollar bottomed at fresh 15-year lows against the yen on November 1st, Toyota’s stock ended its last swoon. On November 4th, TM gapped up and closed 3% higher on a … Read more
I have written several pieces discussing the likelihood of a dollar relief rally and now the increasing momentum of that rally. I recently concluded that the British pound’s break of technical support at the 50-day moving average (DMA) all but confirmed the dollar index’s imminent rendezvous with its 200DMA. However, in all these pieces, I … Read more
As the world’s currency wars rage on, the Federal Reserve is re-emerging as the “victor.” The dollar index looks ready to erase all its gains for 2010 on the heels of the Fed’s threat to roll out quantitative easing (QE) Part 2. This threat in turn came on the heels of the Bank of Japan’s … Read more
In “The Dollar Is Headed Lower“, Randall W. Forsyth wrote in Barron’s that “The dollar’s trend now is unequivocally lower. And that’s apparent whether you look at fundamental factors or the technical picture on the charts.” He does a good job of summarizing the current condition of de facto competitive devaluation that is increasing the … Read more