ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
I did not think the dollar would test the critical multi-year support line this soon. I thought the prospects for an economic recovery that is looking stronger than in competing developed economies would be sufficient to give the dollar a helping hand up despite the Federal Reserve’s best attempts to keep grinding the currency into … Read more
The “cooling off” of silver and gold has unfolded very slowly over several months. On Thursday, this process entered yet another phase. This time, silver made a clean and strong break below its 50-day moving average (DMA). Silver even made its first lower low since the latest rally began in late summer. Gold has spent … Read more
The cooling process for gold and silver has moved slowly and deliberately. The first step featured a fight through parabolic upswings, especially for silver. The next step finally seems underway with the first break of primary (short-term) uptrends. Gold closed below its 50-day moving average (DMA) for the first time since August. Silver closed below … Read more
The week ended with the S&P 500, SLV (a silver ETF), and GLD (a gold ETF) all approaching former 52-week highs. The U.S. dollar dropped 1.3% on Friday, decisively failing at resistance at its 200-day moving average (DMA) and putting an exclamation point on the week’s action. The S&P 500 broke through its last battle … Read more
A surprise increase in margin requirements after the close of business November 10th apparently contributed to the climactic end to silver’s parabolic move on Tuesday. This also explains why gold’s fade was not nearly as bad a silver’s. Details are available in the following references in order of publication: CNBC (Tues): “CME Taps the Brakes … Read more