ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
(This is an excerpt from an article I originally published on Seeking Alpha on March 1, 2012. Click here to read the entire piece.) On Wednesday, February 29, gold plunged 5.0% and silver plunged 5.7% presumably because traders had incorrectly bet that Ben Bernanke would use the occasion of his semi-annual Congressional testimony to either … Read more
This is an excerpt from an article I originally published on Seeking Alpha on December 16, 2011. Click here to read the entire piece.) Eventually, the broken clocks calling for another massive sell-off in gold could be right. I sure hope so. I need to add to my current holdings at cheaper prices. The latest … Read more
The gold bubble continues to “unpop.” In fact, as it turns out, the recent dip in gold was just a pullback to trend. This three-year weekly chart puts some perspective on the recent pullback. Source: stockcharts.com While gold skeptics were declaring that gold’s “bubble” had popped again, the Chinese were busy scooping up the yellow … Read more
This is an excerpt from an article I originally published on Seeking Alpha on October 30, 2011. Click here to read the entire piece.) The U.S. dollar was one of last week’s biggest losers during a very bullish week. As I have chronicled for several weeks now, the market’s bullish signals continue to grow. With … Read more
Gold is suddenly just about the only asset that is working in financial markets. This fact will likely ignite a positive feedback loop that will send gold parabolic in a matter of time. In “India Gold Imports May Reach a Record“, Bloomberg provides some great statistics from various sources that seem to add weight to … Read more
(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) The relief rally for the U.S. dollar that I expected after the S&P downgrade of U.S. government debt did not materialize last week. {snip}…The dollar gained 1.6% over the franc BUT not until after the … Read more
(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) Apparently, the Federal Reserve cannot print money quite fast enough. On Monday, August 8, the S&P 500 priced in terms of gold finally broke the March, 2009 lows. Source: stockcharts.com (Note that the ratio of … Read more
(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) {snip} …if fear is running rampant in the gold trade, it is not fear of a recession, depression, etc… Instead, it is the fear of former chairman Alan Greenspan – better yet, it is the … Read more
(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) Alix Steel, a reporter for thestreet.com, discussed gold on Nightly Business Report, July 26. She claimed that gold’s low volume, summer rally is being fueled by fears of a default on U.S. debt. Nevermind that … Read more
“Fed May Launch New Round of Stimulus.” So rang the headlines. The Federal Reserve seemed poised to launch another round of quantitative easing if only it had a weak economy to generate the proper excuse. An Associate Press article about steel stocks suggested that the market’s rally was specifically about the prospect of potential stimulus: … Read more