ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
For the first time since at least 2008, speculators flipped bearish on silver. Source: Oanda’s CFTC’s Commitments of Traders Speculative net contracts have trended downward for about a year and approached zero in December around the time the Federal Reserve last hiked rates. Yet, I did not think it was “possible” for positioning to go … Read more
A month ago, I described the Japanese yen (FXY) as a currency on edge given a sharp and abrupt response to a feared tightening cycle from the Bank of Japan (BoJ). So far, no tightening cycle has launched, but the yen has steadily strengthened over the last month. For example, USD/JPY broke down below support … Read more
AT40 = 64.0% of stocks are trading above their respective 40-day moving averages (DMAs) – ended a 1-day overbought period AT200 = 62.7% of stocks are trading above their respective 200DMAs VIX = 11.7 Short-term Trading Call: bullish Commentary It figures that just one day after the stock market finally crossed into overbought territory, it … Read more
I wrote little about the Japanese yen (FXY) over the past year or more. It’s time to pay closer attention. As every forex trader knows by now, on Tuesday, January 9th the Bank of Japan (BoJ) slowed down its purchase of bonds with more than 10 years maturity. The yields of these bonds ticked up … Read more
The Canadian dollar (FXC) is at an interesting juncture. Strong economic data has strengthened the currency but the Bank of Canada (BoC) has applied brakes on currency’s rally. The Canadian dollar weakened in the wake of policy statements in October and December. The last word of 2017 went to the economic data as hot inflation … Read more