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. Click here to read the entire piece.) In July, I used ideas from Jeremy Grantham to lay out a case for taking advantage of a coming “commodities crash” to invest in and prepare for a future resource-constrained world: “Preparing for Profits in … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. To learn more about it, see my T2108 Resource Page.) T2108 Status: 13%. VIX Status: 32 General (Short-term) Trading Call: Close most bearish positions. Start building bullish positions. Commentary If you have spent the last nine months feeling like you missed … Read more
(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) {snip} This piece is a follow-up post to “Preparing for Profits in a Resource-Constrained World” (Part 1) in which I discussed the implications of Jeremy Grantham’s fundamental thesis of a new world where resources are … Read more
The stock market is oversold, so I am hunting for bullish setups in the charts. Apple (AAPL), the iShares MSCI Brazil Index Fund ETF (EWZ), and the iShares MSCI Australia Index Fund ETF (EWA) are a few of the charts that have caught my interest. Apple (AAPL) plunged through dual supports and bounced right back … Read more
As I watched the U.S. dollar swiftly reverse course after some early post-employment numbers strength, I concluded that this was the final confirmation I needed that the dollar is going much lower from here. I made a point to review my list of commodity charts and then did a quick check of EWZ, the iShares … Read more
While the general stock market just keeps crawling steadily upward, individual stocks continue to produce some very interesting, and very tradable charts. For example, over the past several months, I have been able to identify many valuable breakouts as well as some breakdowns. The three charts in this post are not directly related, but I … Read more
The iShares MSCI Brazil Index Fund ETF (EWZ) broke out in early September, 2010 from an important downtrend pattern. At the time, I lamented that I missed the move because I was still playing the strategy of waiting for a 20% correction in EWZ before making a purchase. On Friday, EWZ completed a roundtrip from … Read more
Looks like the days of buying EWZ after a 20% correction and waiting out the recovery may be coming to an end for now. Last week, the Brazil Index Fund ETF, EWZ, broke out above a nine-month long downtrend. *Chart created using TeleChart: This is a very bullish development and opens up the prospect of … Read more
The extended downtrend in the Brazilian ETF, EWZ, remains intact. In particular, over the past 10 months, EWZ has made lower highs and lower lows. The gap up in the beginning of August marked the end of the last rally as it was stopped cold at the resistance from the downtrend line. The weekly chart … Read more
I spent a lot of time over the past oversold period studying rules and guidelines for trading the (inevitable) bounce out of the selling pressure. The oversold period ended inconclusively, but my rule for buying the ETF for Brazil, iShares MSCI Brazil Index Fund ETF (EWZ), definitively worked for a second time. When EWZ started … Read more