ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The Federal Reserve’s expressed desire for quantitative easing and Operation Twist has been to lower long-term interest rates. The response to the announcement of QE3 on September 13th has not yet generated lower interest rates except for a brief moment. The iShares Barclays 20+ Year Treasury Bond Fund (TLT) is one way to play long-term … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on September 3, 2012. Click here to read the entire piece.) “…the private sector’s revised outlook for the policy rate also appears to reflect a growing appreciation of how forceful the FOMC intends to be in supporting a sustainable recovery.” (Ben Bernanke … Read more
While writing about the attractive price of Pan American Silver (PAAS) and the seemingly imminent breakoout for silver (SLV), I neglected to note that SPDR Gold Shares (GLD) has already broken out from its extended downtrend. This move is of course inspired by Ben Bernanke’s Jackson Hole speech. At the same time the market anticipates … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on August 19, 2012. Click here to read the entire piece.) In 2010, the SPDR S&P Homebuilders ETF (XHB) rallied sharply only to peak in parabolic fashion in April. That Fall, I reaffirmed my belief that housing would bounce along the bottom … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on June 22, 2012. Click here to read the entire piece.) Thursday was a good day for the dollar index (UUP) as it experienced one of its strongest one-day rallies of the year. {snip} While the dollar’s rally was indeed impressive, I … Read more