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 September 25, 2016. Click here to read the entire piece.) Source: UK Government Nothing shows better the edginess of traders than a quick trigger reaction to rumored news. On Friday, September 16 rumors ripped through the news headlines that the UK’s … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on September 7, 2016. Click here to read the entire piece.) The theme was consistent for the Markit economic indicators for August: the UK economy rebounded sharply and strongly from the initial post-Brexit blues. Almost across the board, measures of economic activity … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on July 13, 2016. Click here to read the entire piece.) And so ends the flurry of sentiment on Brexit. The Google Trends chart makes “Brexit” look like a big anxiety bubble. While sentiment has calmed down, the British pound (FXB) is … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on June 26, 2016. Click here to read the entire piece.) The British pound (FXB) suffered a historic plunge in the wake of Brexit’s victory, the beginning of the UK’s divorce from the European Union (EU). While headlines have been full of … 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
(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
Earlier this month, I used Google Trends to demonstrate that the currency market lagged a key shift in Brexit sentiment. Just 10 days later, interest (aka anxiety?) in Brexit, the prospect of a UK exit from the European Union (EU), has scaled new heights while the British pound (FXB) has hit new lows for the … Read more
Over the past two weeks or so, I have focused my currency trading on fading the British pound (FXB) and the Australian dollar (FXA). In “The Currency Market Is Lagging A Dramatic Shift in Brexit Sentiment,” I compared market sentiment versus the trading action and made the following claim (emphasis newly made): “If my interpretation … Read more
At least I expected to have a lot of commentary on the British pound going into the June 23rd referendum on the United Kingdom’s membership in the European Union (EU) aka “Brexit.” In the blink of an eye, the British pound soared against all major currencies.For emphasis, I show a 1-minute chart along side the … Read more
I have a feeling I will be writing about the British pound a lot more in the coming weeks leading into the June 23rd referendum on the UK’s membership in the European Union (EU), aka Brexit. Out the gate this week, the British pound (FXB) gapped down in early trading before the Asian open. This … Read more