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 July 5, 2014. Click here to read the entire piece.) As I have warned on several occasions, the adage to “sell in May” and go away until the Fall is an over-simplified approach to trading around the summer months. It turns … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on February 25, 2014. Click here to read the entire piece.) So far, 2014 has included more angst about emerging markets, a large (and temporary) spike on volatility, a sharp rally in bond prices, and an impressive (counter-trend) rally in gold. Through … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on February 1, 2014. Click here to read the entire piece.) CNBC’s “By the Numbers” recently reviewed the predictive power of the January Barometer with the following observations: “The January barometer has been right in 62 of the last 85 years, or … 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
(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
On December 27th, I wrote “The Australian Dollar And Japanese Yen Enter 2014 Joined At The Hip – A Split Could Be Telling.” So I find it very intriguing, interesting, and validating to see 2014 start with a dramatic example of the shared hip joint between the Australian dollar (FXA) and Japanese yen (FXY). Since … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on December 27, 2013. Click here to read the entire piece.) In “A Major Test Awaits The Australian Dollar In 2014 As 2013 Delivered New Correlations” I discussed this year’s strong (inverse) relationship between the U.S. 10-year Treasury yield and the Australian … Read more
In previous Apple chart reviews and updates, I have noted the apparent influence of the open interest put/call ratio on the overall bull/bear tone of Apple (AAPL). When the stock last bottomed – between September 16th and 17th – the open interest put/call ratio dropped to a level last seen since, you guessed it, AAPL’s … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on September 2, 2013. Click here to read the entire piece.) The summer of 2013 delivered a flat performance for the S&P 500 (SPY). The S&P 500 closed at 1,630.74 on May 31st. The 1,632.97 close on August 29th ended the summer … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on July 2, 2013. Click here to read the entire piece.) Starting November, 2012, Japan’s longstanding efforts to devalue its currency finally began experiencing sustained success. Since the massive devaluation process started, both the Nikkei (EWJ) (NKY) AND the S&P 500 (SPY) … Read more