ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The trading volatility in Bitcoin (BTC) is delivering a healthy number of extremes. These accumulating extremes are helping me build associations between Bitcoin price action and Google search interest in the cryptocurrency. The latest round of extremes delivered some eye-opening associations which could help traders in the near future. This week, on January 15th, Bitcoin … Read more
At the time of writing, Bitcoin (BTC) just experienced another large one-day loss…currently around 10%. Source: Yahoo Finance A week ago, sellers panicked and sent Bitcoin careening toward $10,000 as an orderly pullback from all-time highs suddenly became chaotic. Buyers quickly moved in and the cryptocurrency stabilized. Until last week’s low gets violated, I am … Read more
Buy the crash. Sell the all-time high. Rinse. Repeat. This has been a time-honored trading strategy for Bitcoin that, in hindsight, has offered a very low-risk way of profiting form the manic rise of Bitcoin. Today, the famed cryptocurrency was down as much as 30% before bouncing back with a furious rally. The trading strategy … Read more
AT40 = 59.4% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 59.9% of stocks are trading above their respective 200DMAs VIX = 9.4 Short-term Trading Call: cautiously bullish Commentary The market fatigue I pointed out last week lasted just one more day. In the spirit of this relentless bull market, … Read more
Maybe it is fear of the Fed, maybe it is the distraction of cryptocurrencies reaching for infinity. Whatever the issue, speculators in precious metals are in rapid retreat as net long contracts dropped to levels not seen in 4 to 5 months. Source: Oanda’s CFTC’s Commitments of Traders This decline represents the climax of October’s … Read more
AT40 = 57.0% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 58.8% of stocks are trading above their respective 200DMAs VIX = 10.2 Short-term Trading Call: cautiously bullish Commentary The stock market is looking a little tired. The S&P 500 (SPY) closed at another all-time high on Tuesday and at … Read more
AT40 = 60.6% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 59.6% of stocks are trading above their respective 200DMAs VIX = 11.4 Short-term Trading Call: cautiously bullish Commentary I call it a mini panic dip. Political news roiled the stock market for a brief moment, a grand 30 minutes … Read more
AT40 = 59.8% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 59.1% of stocks are trading above their respective 200DMAs VIX = 10.7 Short-term Trading Call: cautiously bullish Commentary “Time is ticking away for the bears and sellers as the period between Thanksgiving and Christmas is typically a very mild, … Read more
AT40 = 47.9% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 54.6% of stocks are trading above their respective 200DMAs VIX = 11.4 Short-term Trading Call: cautiously bullish Commentary The S&P 500 (SPY) failed to follow-through on Thursday’s snapback rally, but a bullish divergence kept the short-term prospects looking good. … Read more
AT40 = 45.8% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 53.8% of stocks are trading above their respective 200DMAs VIX = 11.8 (10.4% loss) Short-term Trading Call: cautiously bullish Commentary It was one of THOSE days for anyone or anything standing in the way of the buyers. Source: Twitter … Read more