ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The British pound has taken some sharp twists and turns since first hitting 4-month lows against the U.S. dollar on September 28. I have been steadfast in my bearishness against the pound since mid-September, but I have found it necessary to dance in and out of positions given the persistent decline in the dollar against … Read more
Today has been a wild day in the financial markets, and I almost hesitate to jot down my thoughts before the close of trading. However, I will be shutting things down to get the weekend started as soon as possible, so I am writing now while thoughts remain fresh. There is no one theme I … Read more
When everyone is a contrarian, no one is a contrarian. I consider this a corollary to the famous quote from Humphrey Neill: “When everyone thinks alike, everyone is likely to be wrong” (from a book I really enjoy but inconsistently apply “
This morning, the Bank of England released its minutes from the September meeting of the Monetary Policy Committee. From my reading, it contained no new news on the prospects for negative interest rates. The “relief” from the minutes has so far lifted the pound against the euro, the U.S. dollar, and even the yen. I … Read more
The dollar’s inexorable descent continued Tuesday as the index hit fresh 11-month lows after consolidating for 4 weeks. Accompanying the most recent weakening in the dollar has been a surge in gold and silver. Gold touched $1000/ounce and silver is now up about 44% for the year. Barrick Gold (ABX) has FINALLY eliminated its gold … Read more