ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
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
The U.S. Federal Reserve is set to cut interest rates by 25 basis points in the coming week (July 31). The odds for at least another 50 basis points by next January are around 61.9% according to the CME FedWatch Tool. Yet, the U.S. dollar index (DXY) has regained new life. After breaking critical support … Read more
AT40 = 58.4% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = ~52.4% of stocks are trading above their respective 200DMAs VIX = 14.5Short-term Trading Call: neutral Stock Market Commentary A week ago, the S&P 500 (SPY) made a new all-time, and I was expecting a trip into overbought conditions. AT40 … Read more
My wait for an entry point to buy Lennar (LEN) continues. On a day with multiple warning signs about the U.S. economy from companies like Csx Corp (CSX), the Census Bureau piled on with lukewarm data on housing starts. While single-family housing starts for June increased month-over-month by 3.5% to 847,000, housing starts decreased on … Read more
As Bitcoin (BTC/USD) pulls back again to the $10,000 level, there is a lot of news swirling to explain the sell-off. Google Trends still works as a way to cut through the haze on Bitcoin. Fresh Validation for The Google Trend Momentum Check When Bitcoin ended its last parabolic run on June 26, Google Trends … Read more