ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
When I last wrote about the Turkish lira in mid-January, USD/TRY had pulled back sharply off a parabolic run-up. The iShares MSCI Turkey (TUR) was also at the beginning of a dramatic bottoming pattern that was later confirmed with a close above its 50-day moving average (DMA). Source: FreeStockCharts.com When the Central Bank of the … Read more
AT40 Status: 63.5% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 Status: 70.8% of stocks are trading above their respective 200DMAs VIX Status: 12.1 (volatility index) Short-term Trading Call: neutral Commentary In my last “Above the 40” post, I noted that the rejection of AT40 (T2108), the percentage of stocks trading … Read more
AT40 Status: 65.6% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 Status: 70.2% of stocks are trading above their respective 200DMAs VIX Status: 11.7 (volatility index) Short-term Trading Call: neutral Commentary The struggle for the overbought threshold continues. AT40 (T2108), the percentage of stocks trading above their respective 40-day moving averages … Read more
Perhaps the shift was not large enough. Perhaps it was the magnetism of the 50-day moving average (DMA). After the Federal Reserve released the minutes from its last meeting on monetary policy, the U.S. dollar index (DXY0) promptly weakened. The dollar closed the day marginally lower after trading for a small gain in the morning. … Read more
(“Above the 40” uses the percentage of stocks trading above their respective 40-day moving averages [DMAs] to assess the technical health of the stock market and to identify extremes in market sentiment that are likely to reverse. Abbreviated as AT40, Above the 40 is an alternative label for “T2108” which was created by Worden. Learn … Read more
The U.S. dollar index (DXY0) has started 2017 on a notable losing streak. The index’s clean close today below 100 is the latest confirmation of that weakness. The U.S. dollar index continued its dribbling down the lower part of Bollinger Bands (BBs) that define the current downtrend. Source: StockCharts.com This extension of weakness has complicated … 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 T2108, see my T2108 Resource Page. T2107 measures the percentage of stocks trading above their respective 200DMAs.) T2108 Status: 53.9% T2107 Status: 65.4% VIX … Read more
The UK’s FTSE 100 remains a big post-Brexit winner. This headline from the Telegraph for January 10, 2017 says it all: “FTSE 100 records longest run of closing highs since 1984 as Brexit fears hurt pound.” The FTSE 100 was created in 1984. Never since that time has the index notched nine straight all-time highs … 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