ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The latest CFTC data on the Commitments of Traders (CoT) shows some important moves in the positioning of speculators. Australian dollar (FXA) While the price of iron ore plunged, bullishness on the Australian dollar (FXA) remained surprisingly strong. I am almost equally surprised to see this bullishness now in full scale retreat as iron ore … Read more
In the previous week, forex traders extended existing positioning trends. This consistency reveals an on-going confidence in the given trends. Where these changes are consistent with currency moves, traders seem indeed justified in the confidence. However, there are some cases where these positions are starting to run counter to potential shifts in currencies. I expect … 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 July 8, 2015. Click here to read the entire piece.) Against my previous expectations, the Australian dollar (FXA) continues to shrink. First the Chinese government panicked with successive rate cuts and next direct manipulation in its stock markets. Now it seems … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on November 6, 2014. Click here to read the entire piece.) The pressure is building on the Australian dollar (FXA). If it were not for the fresh collapse in the Japanese yen (FXY), the proverbial risk trade would be looking very shaky. … Read more