ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
(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 highly 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 … Read more
In numerous posts I have described the intriguingly consistent and profitable relationship between the Australian dollar (FXA) and the S&P 500 (for example, see “A Hypothesis for the Connection Between the Australian Dollar and the S&P 500“). In recent weeks, I have also noticed periodic patterns in the way the Australian dollar trades versus the … 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 highly 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 … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on September 4, 2012. Click here to read the entire piece.) On Sunday, September 2, the Australian dollar (FXA) drifted back to flatline for the year against the U.S. dollar. This move prompted me to tweet the following: “$AUDUSD close to flat … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on September 12, 2012. Click here to read the entire piece.) In one more day, the Federal Reserve announces its next decision on monetary policy. In anticipation, the dollar (UUP) has traded lower and lower. The Australian dollar (FXA) has been one … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on September 11, 2012. Click here to read the entire piece.) Federal Reserve Chairman Ben Bernanke has made the case for further monetary easing simple and straightforward. Unless some miracle happens in the economy to send growth hurtling upward (presidential campaign promises, … 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 highly 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 … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on August 21, 2012. Click here to read the entire piece.) The Reserve Bank of Australia (RBA) released the minutes of its last monetary policy decision during which it seemed to declare a soft landing for China. I took particular interest in … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on August 17, 2012. Click here to read the entire piece.) I have written multiple times about the usefulness of the Australian dollar (FXA) as an early indicator or confirming signal for directional trading on the S&P 500 (SPY). For an example, … Read more
The Australian dollar (FXA) continues to provide a useful leading indicator of the likely direction of the S&P 500 from day-to-day and week-to-week. After pointing out the signs of a bearish divergence on Thursday, August 16th, a notable bearish divergence opened between the S&P 500 and the Australian dollar the following day. The Australian dollar … Read more