ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
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
(This is an excerpt from an article I originally published on Seeking Alpha on February 22, 2016. Click here to read the entire piece.) Sometimes the test of a change in sentiment is not in the pace of the new trend, but instead in the behavior after that trend first gets tested. {snip} Source: FreeStockCharts.com … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on May 8, 2016. Click here to read the entire piece.) Speculators are now net long gold at levels that surpass the financial crisis of 2008/2009 and the major 2011 peak in gold prices. Source: Oanda’s CFTC’s Commitments of Traders Given this … Read more
Traders remain very confident in the strength of the Japanese yen (FXY). Net longs stayed at “maximum bullishness” even ahead of last week’s monetary policy meeting by the Bank of Japan (BoJ). Source: Oanda’s CFTC’s Commitments of Traders That boldness paid off as the BoJ failed to deliver more easing, and the yen soared. USD/JPY … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on March 28, 2016. Click here to read the entire piece.) Last December, I wrote about the shaky prospects for the seasonal trade on home builders. Sure enough, iShares US Home Construction (ITB) has not performed this badly on an absolute or … Read more