ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
A week ago, the CFTC’s Commitments of Traders report revealed that speculators had ramped up net short contracts to highs unseen since at least 2008. These positions were accumulated ahead of announcements on monetary policy from the Bank of England and the U.S. Federal Reserve. Given the British pound soared through these events, I assumed … Read more
Just three weeks ago, speculators sent their bullishness on the Canadian dollar to a 4-year high. I followed along with the speculators and accumulated a short USD/CAD position. Two weeks passed before the payoff. It arrived in the form of an anti-dollar reaction to a rate hike from the U.S. Federal Reserve. Source: FreeStockCharts.com With … Read more
Now I understand better why and how the British pound (FXB) soared so much in the wake of the latest announcement on monetary policy from the Bank of England (BoE). Source: FreeStockCharts.com Going into last week’s monetary events, speculators increased their net short contract position to levels not seen since at least 2008. Source: Oanda’s … Read more
Last week I registered my surprise at silver speculators rushing to increase net long contracts to near multi-year highs. This move happened ahead of what was expected to be a parade of Fed-speak clearing the path for a March rate hike. The surge stood out even more given gold’s surge did not bring net long … Read more
The iShares Silver Trust (SLV) made a major peak last summer when it hit a 2-year high. The rally year-to-date seemed to come to an abrupt end when SLV plunged through support at its 200-day moving average (DMA) and its 20DMA uptrend. Source: FreeStockCharts.com However, don’t tell speculators any sad tales about silver. Speculators increased … Read more