ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
(This is an excerpt from an article I originally published on Seeking Alpha on December 16, 2012. Click here to read the entire piece.) Almost two weeks ago, I noted that as long as the Australian dollar (FXA) maintained its stubborn strength, it made sense to play the currency long versus the weakening Japanese yen … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on December 5, 2012. Click here to read the entire piece.) After the Reserve Bank of Australia (RBA) cut interest rates on Monday night, the Australian dollar (FXA) bounced down, up, drifted lower, and then rallied. It is too easy to call … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on December 3, 2012. Click here to read the entire piece.) Analyst consensus anticipates a rate cut at the next meeting of the Reserve Bank of Australia (RBA). I forgive you for being surprised if you have been keeping your eye on … Read more
Today, market traders are noting that the yield on 10-year Japanese government bonds, also known as JGBs, dropped to 9-year lows at 0.72%. This weakness in yields stands in stark contrast to the Japanese yen’s (FXY) spate of weakness over the past two months and especially over the past two weeks. A week ago, I … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on November 6, 2012. Click here to read the entire piece.) The timing of The Reserve Bank of Australia’s interest rate cuts is starting to look like a random number generator. In its latest statement on monetary policy (Nov 6th in Australia), … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are highly likely to reverse. 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 … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are highly likely to reverse. 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 … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on November 2, 2012. Click here to read the entire piece.) This week featured two interesting speeches by Australian officials. On October 30, Philip Lowe, Deputy Governor for the Reserve Bank of Australia (RBA), gave a speech at the Commonwealth Bank Australasian … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on October 16, 2012. Click here to read the entire piece.) Tonight, the Reserve Bank of Australia (RBA) released its minutes for its October 2nd meeting where it cut interest rates 25 basis points to 3.25%. I was looking for a more … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on October 25, 2012. Click here to read the entire piece.) This week, the S&P 500 (SPY) has broken down, providing an early warning that QE3 is not working as expected. The S&P 500 is resting precariously at support formed by the … Read more