ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
When a financial market gets expensive, traders and investors start broadening their search for low-price opportunities. As an overbought U.S. stock market hits the late stages of an impressive rebound from March’s crash, its stock market looks expensive. Meanwhile, “emerging market” currencies like the Turkish lira, South African rand, and the Mexican have barely started … Read more
Stock Market Statistics AT40 = 75.0% of stocks are trading above their respective 40-day moving averages (DMAs) (first oversold day)AT200 = 18.4% of stocks are trading above their respective 200DMAsVIX = 29.3Short-term Trading Call: neutral Stock Market Commentary Buyers followed through on the building momentum from the previous two trading days which drew a line … Read more
Canadian Dollar After the Bank of Canada announced its latest update on monetary policy, the U.S. dollar gained about 1.7% on the Canadian dollar. I thought perhaps the Bank of Canada delivered some incredibly awful news. Nothing in the statement was a surprise. Indeed, the Bank of Canada essentially suggested it would not take rates … Read more
AT40 = 3.8% of stocks are trading above their respective 40-day moving averages (DMAs) (23rd oversold day)AT200 = 5.0% of stocks are trading above their respective 200DMAs (new low for the oversold period)VIX = 65.5Short-term Trading Call: bullish Stock Market Commentary First a dose of hope: “Coronavirus treatment: Palo Alto woman recovers from coronavirus after … Read more
AT40 = 4.2% of stocks are trading above their respective 40-day moving averages (DMAs) (9th oversold day)AT200 = 11.4% of stocks are trading above their respective 200DMAsVIX = 54.5Short-term Trading Call: bullish Stock Market Commentary The Shake and Bake bottom completely collapsed on Monday in the face of massive second derivative selling. The stock market … Read more