ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
For many commodity-related stocks the bounce from the March, 2009 lows to the first peak in June encompasses the bulk of their respective gains in the past 15 months. The current, on-going correction has delivered such heavy losses to some of these stocks that they are now trading at those June, 2009 prices. About 1/3 … Read more
(This is a guest post written by “Chenzo” of forexcharts.net) If any lesson was clear during the past few turbulent weeks of trading, it was that our markets are more closely entwined than ever. Perhaps this is a sign of our continuing globalization path, but the waves created by any financial event are traveling across … Read more
On April 1, 2010, the Swiss National Bank (SNB) apparently intervened to arrest the appreciation of its currency against the euro, and I wondered whether this action would be as futile as all the other interventions this year. So far, so good for the SNB, as the previously persistent buyers of Swiss francs have all … Read more
For most of this year, I have interpreted the Federal Reserve’s policy to maintain “exceptionally low levels of the federal funds rate for an extended period” as the equivalent of low rates for at least the next six months from each new confirmation. This interpretation came from a January interview with New York Federal Reserve … Read more
A catalyst for working off the market’s over-extended and over-bought conditions remains elusive. The Federal Reserve’s latest monetary policy statement essentially blessed the market’s stubborn “melt-up.” The statement did not provide the incremental “hawkishness” as I was expecting given last month’s surprise discount rate hike. In fact, this statement’s reference to low rates for an … Read more