ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
On September 19th, the Reserve Bank of Australia (RBA) released the minutes from its last meeting on monetary policy (September 5, 2017). Iron ore was perhaps the biggest headline coming out of those minutes. Surprisingly, the RBA called a top in the price of iron ore (emphasis mine): “Iron ore prices had been supported at … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on July 20, 2017. Click here to read the entire piece.) {snip} With THAT quote, Debelle rang loud and clear with a confirmation of my claims in my earlier post that the Bank would find a way to walk the market back … Read more
I have been bearish on the Australian dollar (FXA) for quite some time now. My main driver was a reversal in fortunes for soaring iron ore prices that in turn weighed down the currency. Iron ore prices rebounded so much since hitting one-year lows last month that the raw ingredient for steel is now technically … Read more
Australia just celebrated setting a (modern era) world record for the longest string of quarters without a recession. Yet Australia’s economic backdrop appears to be wavering. This week’s labor force survey could provide a critical point of relief or pile on yet more concern. Iron Ore’s Latest Plunge I begin with iron ore – Australia’s … Read more
AT40 = 52.7% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 65.2% of stocks are trading above their respective 200DMAs VIX = 11.2 (volatility index) Short-term Trading Call: neutral Commentary Here we go again. Divergence is rearing its head again and bringing a dose of reality to the setup for … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on October 16, 2016. Click here to read the entire piece.) Three weeks ago, I was clearly premature in declaring an “ominous sentiment shift” in the Australian dollar (FXA). Since then, speculators have buckled down and returned to growing net long positions … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on September 25, 2016. Click here to read the entire piece.) The latest data on speculator forex positioning showed a sudden and abrupt change in sentiment on the Australian dollar (FXA). {snip} If this sharp drop in net longs turns into net … Read more
Global bond yields are falling like rocks, many investors are paying governments to hold their money, and odds are increasing for more monetary accommodation from the major economies in the likes of the United Kingdom, the eurozone, and Japan. In the U.S., expectations for a rate cut have essentially been moved off the table. So, … Read more
As the smoke started to clear from Friday’s post-Brexit carnage, one currency rose particularly well from the ashes: the Australian dollar (FXA). For example, against the U.S. dollar, the Aussie bounced perfectly off support at its 200-day moving average (DMA) and even maintained its earlier 50DMA breakout. Source: FreeStockCharts.com AUD/USD traded around 0.76 around the … Read more
On June 6, 2016 (U.S. time), the Reserve Bank of Australia released its latest statement on monetary policy. The pronouncement was as pedestrian as ever, including leaving rates untouched. The most notable difference from the current and the previous statement appears to be the RBA’s reflections on inflation. In the current statement, the RBA made … Read more