ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
AT40 = 49.8% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 63.3% of stocks are trading above their respective 200DMAs VIX = 12.4 (volatility index) Short-term Trading Call: cautiously bullish (see caveats below) Commentary On Thursday, March 30 (2017), the S&P 500 (SPY) closed above its downtrending 20-day moving average … Read more
A week ago, the CFTC’s Commitments of Traders report revealed that speculators had ramped up net short contracts to highs unseen since at least 2008. These positions were accumulated ahead of announcements on monetary policy from the Bank of England and the U.S. Federal Reserve. Given the British pound soared through these events, I assumed … Read more
AT40 = 35.3% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 57.6% of stocks are trading above their respective 200DMAs VIX = 12.8 (volatility index) Short-term Trading Call: bearish Commentary The sellers did their best to create follow-through selling to the previous day’s bearish breakdown. As has been the case … Read more
AT40 = 35.7% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 58.6% of stocks are trading above their respective 200DMAs VIX = 12.5 (volatility index) Short-term Trading Call: bearish Commentary The S&P 500 (SPY) finally flipped the switch on the bearish threshold I have described since the last bullish breakout … Read more
The Bank of England (BoE) has not raised interest rates since the Great Financial Crisis. During this time, there have been several inflation “scares” as inflation levitated well above the Bank’s 2% target. Through it all, the BoE stood resolute in choosing to see through the elevated inflation in order to avoid premature rate hikes … Read more