ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
A little over two weeks ago I made the case for implementing a pairs trade on Tesla Motors (TSLA) long versus Solar City (SCTY) short. What unfolded from there rolled out according to my first scenario: SCTY continuing to sell-off and TSLA outperforming. Indeed, TSLA’s outperformance has returned to the all-time high level set earlier … Read more
Back in October, 2009 When Brazil won the 2016 Summer Olympics, I heralded the news as an opportunity to invest in a country that promised to grow faster than the United States. The iShares MSCI Brazil Capped (EWZ) never quite matched its peak from 2008 but managed to ride the wave of a post-recession, commodity … Read more
In early April, 2015, I simplified my Apple Trading Model (ATM). I examined the historical data to determine whether Apple’s (AAPL) open contained all the information needed to trade the stock on the day. I had an “ah ha” moment when I discovered that AAPL tended to trade in the same direction of its open. … 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
(This is an excerpt from an article I originally published on Seeking Alpha on July 3, 2016. Click here to read the entire piece.) When I last wrote about the Teucrium Corn ETF (CORN), I announced I was finally selling my core position and moving to a new shorter-term trading orientation. My decision happened to … 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
(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
(This is an excerpt from an article I originally published on Seeking Alpha on May 31, 2016. Click here to read the entire piece.) At the beginning of this month, I claimed an unwind of confidently long positions was imminent for the Australian dollar. {snip} Source: Oanda’s CFTC’s Commitments of Traders {snip} Source: FreeStockCharts.com At … 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