ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
A little over two weeks ago, I wrote “Yen Bulls Finally Back Down” to mark an important milestone: for the first time in a year, currency speculators went net short the Japanese yen (FXY). I closed out my long USD/JPY position and waited for the U.S. Federal Reserve meeting as well as confirmation of the … Read more
By now, traders should know the drill on these highly anticipated events that promise dire potential consequences… Traders build positions in anticipation of or to hedge against the potentially “adverse” outcome of the highly anticipated event. An outcome interpreted as adverse occurs and markets respond accordingly. The expected response to an adverse outcome turns out … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on November 6, 2016. Click here to read the entire piece.) Analysts are once again making a case for using the Swiss franc (FXF) as a hedge against a big event. Last time, the franc was supposed to be a hedge against … Read more
In my last post, I wrote about the small solace I took in profits on my short AUD/JPY position as the Japanese yen (FXY) surged in response to a looming victory by Donald Trump for the U.S. Presidency. At the time, I closed out the position assuming that currency bearishness was over-extended by quick-trigger negative … 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