A Somber September Puts the Last Pandemic-Era Gains At Risk – The Market Breadth

Credit: Who are at Risk? by jpalinsad360 on Flickr

Stock Market Commentary: September was about as somber as it gets for financial markets. The S&P 500 lost 9.3% for the month which falls well below both the median and average (negative) historical performance for the index. With the June lows breached, the pandemic-era gains for the S&P 500 and the NASDAQ are now at … Read more

Oversold Conditions Stretch At the Edge of the Year’s Lows – The Market Breadth

stretch (credit: Lynn Friedman on Flickr)

Stock Market Commentary: Extreme trading behavior finally appeared right after I insisted the stock market looked uninteresting despite dropping into oversold conditions. Oversold conditions did a stretch toward the year’s lows and created enough concern to finally send the volatility index soaring. Looming over the trading action all day was a collapse in the British … Read more

The Bank of England Stares Down A Conundrum On Inflation

(This is an excerpt from an article I originally published on Seeking Alpha on February 8, 2013. Click here to read the entire piece.) On February 7th, The Monetary Policy Committee (MPC) of the Bank of England (BoE) decided once again to peg interest rates at 0.5%. The projections and explanations for inflation most interested … Read more

The British Pound Is Back In Fashion

(This is an excerpt from an article I originally published on Seeking Alpha on September 2, 2012. Click here to read the entire piece.) The currency markets have gone through waves and cycles of themes thanks to the constant tinkering and interventions by the world’s central banks. With the big news headlines for the United … Read more

British Pound Breaks Out After Uneventful Summer Olympics In London

(This is an excerpt from an article I originally published on Seeking Alpha on August 27, 2012. Click here to read the entire piece.) After three months bouncing up and down in a wide range, the British pound (FXB) is finally breaking out against the U.S. dollar (UUP). This follows a very uneventful Summer Olympics … Read more

Chart Review: The Pound Continues to Break Down

The pound continues to flunk the test of a safe haven currency. Both the yen and the U.S. dollar have been soundly beating out the currency for the entire month of May – for example, CurrencyShares British Pound Sterling Trust (FXB). Those beatings have accelerated along with the worsening crisis in the eurozone. The chart … Read more

Still Bearish on the British Pound

This is an excerpt from an article I originally published on Seeking Alpha on November 15, 2011. Click here to read the entire piece.) Ever since the Bank of England announced more quantitative easing in the form of £75B of more bond buying, the British pound has bottomed and rallied against the U.S. dollar and … Read more

British Business Secretary Cable Supports More QE If Consumer Demand Remains Weak

On July 24, British Business Secretary Vince Cable was interviewed on the BBC’s Andrew Marr Show. During this interview, Cable made the case for further quantitative easing (QE) if consumer demand in the UK continues to weaken. While he was quick to point out that the Bank of England runs independently, he provided a ringing … Read more

The British Pound’s “Quiet” Sell-Off Continues Nearly Unabated

(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) Almost a month ago, Bank of England Governor Mervyn King spoke at the Lord Mayor’s Banquet for Bankers and Merchants of the City of London at the Mansion House, and I wrote afterward that the … Read more

Skeptical the British Pound Can Sustain A Breakout Versus the U.S. Dollar For Now

After scanning through the latest quarterly release of the “Statement of Monetary Policy” from the Reserve Bank of Australia, I was reminded that currency traders are trying to prepare for eventual rate hikes from the European Central Bank (ECB) and the Bank of England (BoE): “While financial markets continue to expect the US federal funds … Read more