ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Several authors have pointed out the difficulties in fashioning trades to take advantage of the movement in oil prices (for a recent example, see “Is Gasoline The Smart Oil Play? UGA Vs. USO“). Analyses counting off the bullish and bearish arguments on oil can fill many tomes. For example, there is fear of a drop … Read more
The Shanghai Composite Index (SSEC) plunged 8.5% to start trading for the week. The ripple effects were wide and far-reaching even as arguments continue floating that the collapse in China’s stock market matters little outside of China and does not truly reflect on economic conditions in the country. Apple (AAPL) CEO Tim Cook summed up … 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
A month ago, I wrote about the resilience of cocoa prices in the face of an avalanche of weaker agricultural prices. Given my opportunistic strategy for trading cocoa through the iPath Bloomberg Cocoa SubTR ETN (NIB), I laid out a price target for locking in profits on the latest trade. I have since sold my … Read more
Illinois Governor Bruce Rauner asked the U.S. Department of Agriculture to declare a disaster in areas of the state hit hard by flooding. He should have asked for disaster relief on behalf of all the nation’s corn. Illinois was the nation’s #2 producer of corn in 2014, but the potential damage from on-going flooding in … Read more