ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
On a big down day in the general stock market, Zynga (ZNGA) managed to gain a fraction of a percent today. The stock punctured support from the current uptrend line but quickly bounced back. Although the stock now needs to clear fresh all-time highs to invalidate the bearish “abandoned baby top” I pointed out yesterday, … Read more
I moderated my bullishness on the Australian dollar in early December because Australia’s terms of trade have likely peaked for now and the Reserve Bank of Australia had lowered rates twice. Last week, I recharged my bullishness on the Australian dollar after the Federal Reserve extended its dovish monetary policy. The Australian dollar experienced a … Read more
The current extended overbought period has produced many amazing chart patterns. In this chart review, I am highlighting some charts I find particularly interesting and compelling. There are impressive recoveries, stocks dancing with critical resistance, and emerging breakouts. Some charts are quite telling in that they completely contradict the presumed economic disaster from an imminent … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. 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 posted on twitter using the #120trade hashtag) T2108 Status: 70% (overbought day #2) … Read more
The British pound continues to validate my bearish outlook on the currency. The recent break below the 50-day moving average (DMA) continues to generate lower prices versus the U.S. dollar. A fourth retest looms of support that has held for over a year. I am doubtful it will hold up yet again given the last … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. 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 posted on twitter using the #120trade hashtag) T2108 Status: 58% VIX Status: 32 … Read more
The U.S. dollar continues to creep slowly but surely upward as the euro steadily sinks week after week. After the dollar survived a plunge below the 200DMA that I thought marked the decisive end of its previous relief rally, the currency has faithfully followed its 50-day moving average (DMA) to higher ground. On Wednesday, the … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag.) T2108 Status: 53% VIX Status: 31 General (Short-term) Trading Call: Hold. Commentary The bullish vibes continue in the stock … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag.) T2108 Status: 15% (1st day of oversold conditions) VIX Status: 45 General (Short-term) Trading Call: Oversold trading rules have … Read more
(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) Since the market swoon began in earnest in August, I have become increasingly interested in the stock market’s reaction to the news of insider buying by company executives. In many cases, I have made the … Read more