ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The seasonal trade on home builders for 2017/2018 showed its first sign of trouble when the iShares US Home Construction (ITB) fell sharply off its 10+ year high in January on the same day the S&P 500 (SPY) set a new (and its last) all-time high. Almost two weeks later, in early February, the under-performance … Read more
NOW this is getting really interesting. I am still in learning mode on cryptocurrencies. Every twist and turn is like a new flower patch around the bend. When I last wrote about the price patterns in Bitcoin a week and a half ago, I gave a qualified call for a bottom in the price of … Read more
The volatility index, the VIX, closed below 11 on April 24, 2017. That launched 184 trading days of extremely low volatility (ELV). The VIX is now just 1 more trading day away from finally bringing this historic event to an end. By my definition, it takes 20 trading days of the VIX closing above 11 … Read more
AT40 = 19.4% of stocks are trading above their respective 40-day moving averages (DMAs) – first oversold day after 19 percentage point plunge AT200 = 45.8% of stocks are trading above their respective 200DMAs VIX = 37.3 (115.6% increase! The largest since at least 1990) Short-term Trading Call: cautiously bullish – oh so many caveats … Read more
At the time of writing, Bitcoin (BTC) just experienced another large one-day loss…currently around 10%. Source: Yahoo Finance A week ago, sellers panicked and sent Bitcoin careening toward $10,000 as an orderly pullback from all-time highs suddenly became chaotic. Buyers quickly moved in and the cryptocurrency stabilized. Until last week’s low gets violated, I am … Read more