ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
I wrote little about the Japanese yen (FXY) over the past year or more. It’s time to pay closer attention. As every forex trader knows by now, on Tuesday, January 9th the Bank of Japan (BoJ) slowed down its purchase of bonds with more than 10 years maturity. The yields of these bonds ticked up … Read more
The latest CFTC data on the Commitments of Traders (CoT) showed some key trends continuing: new heights of bullishness on the Australian dollar (FXA) and the Canadian dollar (FXC), and on-going depths of bearishness for the Japanese yen (FXY). Speculators increased net longs on the Australian dollar for the 8th week in a row. Speculators … Read more
The Japanese yen (FXY) is the one major currency that has been notably weaker than the U.S. dollar for most of the past month. USD/JPY peaked in December, 2016, but it looks like the sell-off bottomed out in April. Source: FreeStockCharts.com This yen weakness has been particularly evident against strong currencies, like the euro (FXE), … Read more
AT40 = 53.7% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 56.5% of stocks are trading above their respective 200DMAs VIX = 11.1 (volatility index) (11.7% gain) Short-term Trading Call: cautiously bullish Commentary Suddenly, tech stocks are in trouble all over again. On June 9, 2017, tech stocks suddenly swooned, … 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