ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Currencies swung wildly and dramatically yesterday. Lost in the breathless descriptions of the continued surge in the US dollar and the sudden strength in the Japanese yen is that the drama really began with renewed strength in the Swiss franc. At around 5am Eastern, the franc suddenly surged against all currencies. In particular, it traded … Read more
The bottom in Toyota’s stock is looking more and more firm. As U.S. auto and truck sales rose 24.3% year-over-year in March, Toyota soared 40.7% on the wings of an intensive ad campaign and generous sales incentives. While one can argue that Toyota bought future sales, these numbers remain astounding in light of the recent … Read more
The drama with Toyota (TM) has intensified this week with sharp and skeptical Congressional scrutiny. I have been impressed at how (relatively) well Toyota’s stock has held up through the negative news flow. As Toyota’s president Akio Toyoda pleaded for mercy on Wednesday – “My name is on every car…You have my personal commitment that … Read more
The Royal Bank of Australia (RBA) surprised markets by leaving rates unchanged at 3.75%. Forecasts pegged the RBA for another 25 basis point increase. The markets reacted with an instant and steep drop in the Australian dollar against all major currencies. For example, the Australian dollar dropped over 1% against the U.S. dollar. (See chart … Read more
The U.S. dollar index is only trading back to levels from last summer. However, from a technical standpoint, the dollar has broken out: the short-term downtrend has ended, and the current move has considerable upside potential. *Chart created using TeleChart: The chart above shows that the dollar’s break below the 200DMA in May led to … Read more