ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
AT40 = 48.1% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 55.4% of stocks are trading above their respective 200DMAs VIX = 12.5 (volatility index) Short-term Trading Call: neutral Commentary Diabolically, the stock market has put my head on the proverbial swivel. I earlier noted how the NASDAQ in particular … Read more
Just as I had hoped and anticipated, the Banco de Mexico hiked its interest rate to 7.0% on June 22nd and kept pace with the U.S. Federal Reserve’s rate hike. Apparently, this rate hike was not a news flash. According to Reuters, the consensus opinion also anticipated a rate hike: “Analysts expected Mexico would match … Read more
The Mexican peso is trading at levels last seen 10 months ago against the U.S. dollar (USD/MXN). Source: FreeStockCharts.com The rate hike from the Federal Reserve yesterday, along with an official launch of the Fed’s effort to reduce the size of its balance sheet, helped USD/MXN rally. Normally, I would fade USD/MXN here at the … Read more
Bulls in the Mexican peso successfully reversed all the post-election gains in USD/MXN. Yet they failed to hold onto a big break through when USD/MXN hit a new 6-month low last week. Buyers quickly stepped in and sent USD/MXN right back to its declining 50-day moving average (DMA). Source: FreeStockCharts.com The latest CFTC data on … Read more
The Trump-wind blowing against the Mexican peso is officially over. In late April, I noted how net non-commercial positions (speculators) in the Mexican peso flipped bullish for the first time in two years just as the peso completely reversed its losses from the election of Donald Trump as U.S. President. I showed how prior changes … Read more