ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The Extreme: Best Buy Regular readers know that my favorite trades come on the heels of extremes in financial conditions. After President Trump announced a 10% tariff on $300B of Chinese imports, I saw a lot of extremes that made me sit up and take notice. One of the biggest extremes occurred in the shares … Read more
Three months ago, I wrote about the “organized chaos” in the British pound (FXB). I described an organized process of GBP/USD bouncing off and pivoting around key moving averages with the occasional sharp interruption of Brexit-related trades. Ironically, the sharp Brexit-related rally that sparked that post looks now like the British pound’s last gasp for … Read more
Perhaps President Recep Tayyip Erdogan was right all along? It seems rate cuts are exactly what Turkey needs. As global central banks pedal backward on monetary policy, the Central Bank of the Republic of Turkey (CBRT) stands out with its extremely high rates. The CBRT got here as part of a fight against persistent and … Read more
The threat of Chinese resistance to sky high iron prices was just enough to put a halt to a parabolic run-up in prices. After a sharp drop, iron ore prices quickly rebounded and have remained relatively flat for about two weeks. The stocks of related iron-ore companies turned around after an initial sharp sell-off. Last … Read more
Housing Market Intro/Summary In the last Housing Market Review, I pointed out how the stocks of home builders were still making a surprising push against the expected seasonal top in their shares. Yet, I still expected iShares US Home Construction ETF (ITB) to remain constrained to a pivot around its 50-day moving average (DMA). Soon … Read more