ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Over the past two days, I have crowed about silver, pondered whether gold will catch up, and marveled at the doubling in the S&P 500 from the March, 2009 lows. Yet, I failed to put the stories together into one chart for proper context: the S&P 500 priced in gold. Of course, almost every gold … Read more
I did not think the dollar would test the critical multi-year support line this soon. I thought the prospects for an economic recovery that is looking stronger than in competing developed economies would be sufficient to give the dollar a helping hand up despite the Federal Reserve’s best attempts to keep grinding the currency into … Read more
The “cooling off” of silver and gold has unfolded very slowly over several months. On Thursday, this process entered yet another phase. This time, silver made a clean and strong break below its 50-day moving average (DMA). Silver even made its first lower low since the latest rally began in late summer. Gold has spent … Read more
The cooling process for gold and silver has moved slowly and deliberately. The first step featured a fight through parabolic upswings, especially for silver. The next step finally seems underway with the first break of primary (short-term) uptrends. Gold closed below its 50-day moving average (DMA) for the first time since August. Silver closed below … Read more
The week ended with the S&P 500, SLV (a silver ETF), and GLD (a gold ETF) all approaching former 52-week highs. The U.S. dollar dropped 1.3% on Friday, decisively failing at resistance at its 200-day moving average (DMA) and putting an exclamation point on the week’s action. The S&P 500 broke through its last battle … Read more
I was about a month premature and about 19% in missed gains when I flagged the potential start of a parabolic move in silver. Or perhaps my definition of a parabolic move should have been more expansive. Either way, silver’s behavior over the past four trading days definitely has taken on the tipsy look of … Read more
Time for a little fun with gold. As a child of the 1980s, I took particular interest in a fun October 13, 2010, Bloomberg interview with A-Team star Mr. T., the celebrity pitchman for Gold Promise. Gold Promise is a service run by Cash America International, Inc. (CSH) that allows people to sell their gold … Read more
Now that the bearish/selling signal for gold (and silver) seems ready to pass without incident, I thought I would take another look at a sentiment analysis on gold. Since little has changed in the three months since I concluded that skepticism towards gold remained high, I am taking a slightly different spin this time around. … Read more
Talk of currency wars have heated up as several events have converged to make the public increasingly aware of the on-going competitive devaluations around the globe. The increasing clamor came ahead of an IMF meeting Thursday and a G7 meeting this weekend where the topic of global trade and currency rates are hot topics. It … Read more
If an asset bubble is characterized by accelerating euphoria as asset prices rise ever higher, gold is still not in a bubble. The skepticism directed towards gold continues to rise along with its price despite gold marking all-time highs the past two months. I decided to do a refresh of last year’s sentiment analysis on … Read more