ONE-TWENTY TWO: Trading Financial Markets
Since the year 2000, delivering a different narrative for students and fans of financial markets: stocks, options, currencies, Bitcoin, and more…
(This is an excerpt from an article I originally published on Seeking Alpha on March 5, 2012. Click here to read the entire piece.) {snip}…this is a good moment to describe finally why I recently sold my long-term holdings in the Rydex CurrencyShares Australian (FXA). {snip} Never once have I pondered the possibility of the … Read more
(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) The Australian dollar has fallen so far, so fast over the past month that I failed to notice a major change in tone from the Reserve Bank of Australia (RBA) on monetary policy until now. … Read more
The Reserve Bank of Australia (RBA) released its minutes from its last board meeting, May 3. I reviewed these minutes curious to understand the bank’s expectations for commodity prices given the on-going sell-off in commodities. The meeting occurred just as commodities started their current sell-off, so these pressures were not salient at the time. However, … Read more
After scanning through the latest quarterly release of the “Statement of Monetary Policy” from the Reserve Bank of Australia, I was reminded that currency traders are trying to prepare for eventual rate hikes from the European Central Bank (ECB) and the Bank of England (BoE): “While financial markets continue to expect the US federal funds … Read more
While most of the Western industrial world struggles with deflationary fears, Australia continues to worry about inflation. In tonight’s latest release on monetary policy, Reserve Bank of Australia (RBA) Governor Glenn Stevens states: “If economic conditions evolve as the Board currently expects, it is likely that higher interest rates will be required, at some point, … Read more
The Australian dollar has been my single source of greatest pain during this market correction. I have long favored the Australian dollar as a play against the U.S. dollar. Even as the U.S. dollar index has rallied over 10% since hitting 16-month lows in November/December, the Australian dollar remained flat during most of that time … Read more
Watching the U.S. dollar try to rally is like watching a wet noodle trying to stand up…in a downpour. The latest relief rally that I expected in the U.S. dollar came and went with a whimper. A week of lackluster meandering upward has ended with three days of selling, punctuated by the Reserve Bank of … Read more