ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The British pound
(This is an excerpt from an article I originally published on Seeking Alpha on October 23, 2012. Click here to read the entire piece.) It took a while, but the British pound (FXB) finally broke down against the U.S. dollar with a recent break below the 50-day moving average (DMA). Source: FreeStockCharts.com This breakdown is … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on October 10, 2012. Click here to read the entire piece.) Just a few days after writing that the U.S. dollar’s post-QE3 rally was giving way to meandering, the U.S. dollar (UUP) surged back to the top of the recent relief rally … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on September 3, 2012. Click here to read the entire piece.) “…the private sector’s revised outlook for the policy rate also appears to reflect a growing appreciation of how forceful the FOMC intends to be in supporting a sustainable recovery.” (Ben Bernanke … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on September 2, 2012. Click here to read the entire piece.) The currency markets have gone through waves and cycles of themes thanks to the constant tinkering and interventions by the world’s central banks. With the big news headlines for the United … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on August 27, 2012. Click here to read the entire piece.) After three months bouncing up and down in a wide range, the British pound (FXB) is finally breaking out against the U.S. dollar (UUP). This follows a very uneventful Summer Olympics … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on July 29, 2012. Click here to read the entire piece.) I started with a bullish strategy to trade the British pound against the U.S. dollar (FXB) after fiscal and monetary authorities rallied to airlift more liquidity into the economy. It worked … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on July 13, 2012. Click here to read the entire piece.) After another pins and needles rally back to the 50DMA resistance, I think it is time to switch to a more bearish strategy on the British pound (FXB). Since mid-June, I … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on June 19, 2012. Click here to read the entire piece.) In “British Pound Surges Into Resistance – Buy Dips As Government and Bank of England Try To Ease Credit Crunch” on June 15th I argued that it is time to buy … Read more
The pound continues to flunk the test of a safe haven currency. Both the yen and the U.S. dollar have been soundly beating out the currency for the entire month of May – for example, CurrencyShares British Pound Sterling Trust (FXB). Those beatings have accelerated along with the worsening crisis in the eurozone. The chart … Read more
On Tuesday (February 28), the British pound finally broke out against the U.S. dollar with a resounding surge above its 200-day moving average (200DMA). The struggle to break this resistance lasted the entire month of February. Despite this technical breakthrough, I remain skeptical that the British pound will deliver much follow-through before faltering again. Indeed, … Read more