ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Earlier today, the Bank of England (BoE) maintained interest rates at 0.50% and did not change the size of its quantitative program… and the market essentially yawned. Such sluggish behavior has characterized the British pound’s behavior against the U.S. dollar for almost three weeks now. Source: dailyfx.com charts (Click for larger view) The over-extension of … Read more
I wrote earlier about a “stealth” rally in solar stocks featuring ReneSola (SOL), Solarfun Power Holdings Co Ltd (SOLF), LDK Solar Co Ltd (LDK), Trina Solar Ltd (TSL), and First Solar (FSLR). In all the excitement, I managed to neglected (at least?) two other stocks publicly traded in the U.S. that are in the green … Read more
I tried to make the case on Monday that the shrill commentary about the struggling American economy and its tepid stock market were getting overwrought with the kind of fever only a contrarian could love. It turns out there were other sentiment indicators flashing important extremes: “Bullish Sentiment Plummets to Credit Crisis Low“ (CNBC, August … Read more
So much for the dollar being “…poised for additional gains, especially versus the euro.” Instead of slowly grinding higher over its 50-day moving average (DMA), the U.S. dollar index failed its test of this important resistance line. Now another test of the 200DMA is right around the corner. *Chart created using TeleChart: Most of the … Read more
OK, by “stealth” I really mean I have not paid close enough attention to the rallies in several solar stocks. 2010 has been a year of true divergence for solar stocks. Some solar stocks have been in year-to-date rallies and others have been declining all year. The net result is an awful -25% year-to-date performance … Read more