British Pound: From Organized Chaos to Orderly Selling

The freefall in the British pound is even more clear in the GBP/JPY pair.

Three months ago, I wrote about the “organized chaos” in the British pound (FXB). I described an organized process of GBP/USD bouncing off and pivoting around key moving averages with the occasional sharp interruption of Brexit-related trades. Ironically, the sharp Brexit-related rally that sparked that post looks now like the British pound’s last gasp for … Read more

Forex Critical – The British Pound Moves On: Out With May, In With Hope

Tears In May Three weeks ago, I wrote about my skepticism about the strength of the British pound (FXB) in the wake of a resounding political defeat for the Conservatives. Brexit-related moves in the pound have proven fleeting and this time was no different. The pound peaked right after that post, but the persistent nature … Read more

Forex Critical: The Organized Chaos of the British Pound

Chaos After the divided politicians of the United Kingdom managed to postpone Brexit to October 31, 2019 from March 29, 2019, I assumed the British pound (FXB) would take a break from wild and sudden gyrations. I was wrong. On Thursday, local elections plunged the Conservative party (the Tories) into a resounding defeat that most … Read more

Above the 40 (June 8, 2017) – The Market’s Bullish Push Through Thursday’s Trifecta

AT40 = 52.1% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 55.4% of stocks are trading above their respective 200DMAs VIX = 10.2 (volatility index) Short-term Trading Call: cautiously bullish Commentary One out of three. The last event of Thursday’s Trifecta had the only notable impact on financial markets. With … Read more

The British Pound’s Latest Brexit Surge Could Signal the Next Sentiment Change

(This is an excerpt from an article I originally published on Seeking Alpha on December 2, 2016. Click here to read the entire piece.) Before Thursday’s open for trading in the U.S. (December 1, 2016), the British pound (FXB) experienced another one of those “quick trigger” moves in reaction to Brexit-related headlines. I use “quick … Read more

T2108 Update (October 25, 2016) – The S&P 500 Meanders Into Earnings Season

(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 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 are … Read more

Trading the Panic In the British Pound

(This is an excerpt from an article I originally published on Seeking Alpha on October 11, 2016. Click here to read the entire piece.) The panic in the British pound (FXB) became unmistakable last week as the currency experienced a flash crash. {snip} The presumed driver of the rush to sell soon after the close … Read more

How Brexit’s Collective Call to Caution Became A Chorus Of Opportunity

The referendum that punted the UK out of the European Union (EU), “Brexit”, is practically a forgotten memory for most people outside of Europe. For example, the aftermath of this vote now looks like an event that quickly shook out the most eager sellers in the stock market and thus paved a course for a … Read more

The British Pound Rises from the Edge of the Abyss

(This is an excerpt from an article I originally published on Seeking Alpha on July 13, 2016. Click here to read the entire piece.) And so ends the flurry of sentiment on Brexit. The Google Trends chart makes “Brexit” look like a big anxiety bubble. While sentiment has calmed down, the British pound (FXB) is … Read more

How to Reconcile Brexit Uncertainties and the Rally in Stock Markets: Don’t

“Faint and quaint” is how I am starting to describe the initial panic and consternation of financial markets resulting from the UK’s decision to exit from the European Union (EU), aka Brexit. The S&P 500 (SPY) now logs new all-time highs as if nothing ever happened. Yet, a rapid consensus has grown around reducing forecasts … Read more