ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
A little over a week ago, I explained why I put the Mexican peso and the Canadian dollar (FXC) on shorter leashes. Canada’s extremely strong second quarter GDP report at the end of August just loosened that leash a little. Statistics Canada reported 2Q real GDP growth of 1.1%. The annualized growth rate of 4.5% … Read more
One by one Trump Trades have unwound and completely reversed all their gains (or losses) since the U.S. Presidential election last November. I find the end of this particular Trump Trade particularly thematic. On June 21, 2017, the VanEck Vectors Russia ETF (RSX) completed a full reversal of its gain since the election of Donald … Read more
{updated to include commentary on The Guggenheim Canadian Energy Income ETF (ENY)} On Monday, June 12, 2017, Senior Deputy Governor of the Bank of Canada Carolyn A. Wilkins delivered a speech at the Asper School of Business in Winnipeg, Manitoba that was firmly bullish on the Canadian economy. The market’s reaction was swift and equally … Read more
On April 17, 2017, speculators turned bullish on the Mexican peso for the first time in 2 years. That point 2 years ago was a brief 1-week relief from on-going bearishness against the peso. The latest data on net non-commercial positions (speculators) show that the nascent bullishness in the peso carried over into a second … Read more
The big story coming out of the November presidential elections was the flurry of “Trump Trades” that soared on an incremental surge of optimism and expectations. Now the growing story includes the sprouting list of trades that have completely reversed post-election gains. The recent rapid decline in oil prices on the heels of surging U.S. … Read more