ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
“Uncertainty about the global outlook is undiminished, particularly with respect to policies in the United States.” – Bank of Canada press release, “Bank of Canada maintains overnight rate target at 1/2 per cent”, January 18, 2017 I start with this quote from the Bank of Canada because it stands in stark contrast to global financial … 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 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
(This is an excerpt from an article I originally published on Seeking Alpha on September 25, 2016. Click here to read the entire piece.) Source: UK Government Nothing shows better the edginess of traders than a quick trigger reaction to rumored news. On Friday, September 16 rumors ripped through the news headlines that the UK’s … Read more
The reaction caught me completely off-guard. On September 6th, the USD ISM Non-Manufacturing/Services Composite for August came in at 51.3, well below “expectations” of 54.9 and the lowest reading since February, 2010. The reaction was swift in financial markets. The 30-day Fed Fund futures pushed out the next rate hike from December, 2016 (54.2%) to … 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 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
Last week was full of important news for forex trading. As a dollar bull, euro bear, and yen bear, the week presented particular challenges that hedging could only soothe a little bit. I had a good run with these positions in recent weeks. As forex goes, a setback was due – just too bad the … 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 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
The Bank of Canada released its latest decision on monetary policy a week ago on April 13, 2016 and left its target rate at 1/2% again. According to the Bank of Canada (BoC), the government’s fiscal policy saved the day for the Canadian economy. Global growth is slowing. The strength in the Canadian dollar (FXC) … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on April 5, 2016. Click here to read the entire piece.) Canada’s GDP report for January, 2016 confirmed renewed strength in the Canadian economy. {snip} Source: Statistics Canada Now that the Canadian economy has apparently stabilized, the weakening in the Canadian dollar … Read more
A bottom for the British pound just got more likely. The latest data from the CFTC shows that net speculators beat a major retreat from net short positions against the British pound: Source: Oanda’s CFTC’s Commitments of Traders The chart shows that speculators have not held such small net short positions since the surge began … Read more