ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
By now, traders should know the drill on these highly anticipated events that promise dire potential consequences… Traders build positions in anticipation of or to hedge against the potentially “adverse” outcome of the highly anticipated event. An outcome interpreted as adverse occurs and markets respond accordingly. The expected response to an adverse outcome turns out … Read more
A full seven months ago I speculated that “maximum yen bullishness” was reaching feverish levels. As a result, I concluded that a bottom had to be imminent in USD/JPY even as the momentum at that time seemed to point to that bottom happening around 7% lower at 100. I acknowledged the potential for making an … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on December 2, 2016. Click here to read the entire piece.) Before Thursday’s open for trading in the U.S. (December 1, 2016), the British pound (FXB) experienced another one of those “quick trigger” moves in reaction to Brexit-related headlines. I use “quick … Read more
Facebook (FB) has long held status as a market darling. Soon after its IPO in 2012, FB was languishing around $20 when bears like me (at the time) were waiting for the stock to drop below $15. From there the stock launched into a near moonshot to the last all-time closing high of $133.28 on … Read more
In my last post, I wrote about the small solace I took in profits on my short AUD/JPY position as the Japanese yen (FXY) surged in response to a looming victory by Donald Trump for the U.S. Presidency. At the time, I closed out the position assuming that currency bearishness was over-extended by quick-trigger negative … Read more