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 August 28, 2016. Click here to read the entire piece.) Going into the Jackson Hole Economic Policy Symposium, various “Fed heads” were interviewed about the prospects for the next rate hike. The chorus in the days and weeks before Jackson Hole … 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
After watching Boston Federal Reserve President Eric Rosengren speak at the South Shore Chamber of Commerce in Quincy, MA, I concluded Rosengren did not intend to rock the stock market on September 9, 2016. Ironically, the market’s extremely low volatility and lofty levels make the market “vulnerable” to good news. Good news drove Rosengren’s upbeat … Read more
“Most participants judged that if incoming data were consistent with economic growth picking up in the second quarter, labor market conditions continuing to strengthen, and inflation making progress toward the Committee’s 2 percent objective, then it likely would be appropriate for the Committee to increase the target range for the federal funds rate in June…Some … Read more
The message is clear: the U.S. Federal Reserve WANTS to hike rates a few more times this year. Various Fed officials started this week with speeches and interviews discussing their desire to hike rates again as early as June and for a total of two or three hikes in 2016. The response is also clear: … Read more