ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The tides are once again turning against the Turkish lira. For a week, USD/TRY battled with resistance at its 200-day moving average (DMA). Over the last two trading days, the currency pair finally made new closing highs on the 200DMA breakout. USD/TRY faded after testing the highs from the last 200DMA breakout in July. USD/TRY … Read more
The Turkish lira was one of the biggest beneficiaries of the renewed weakness of the U.S. dollar (DXY0) in the wake of Jackson Hole on Friday. USD/TRY closed at a new low for 2017. In fact, USD/TRY has not traded this low since early December, 2016. The daily chart above shows how USD/TRY has trended … Read more
AT40 = 48.1% of stocks are trading above their respective 40-day moving averages (DMAs) AT200 = 55.4% of stocks are trading above their respective 200DMAs VIX = 12.5 (volatility index) Short-term Trading Call: neutral Commentary Diabolically, the stock market has put my head on the proverbial swivel. I earlier noted how the NASDAQ in particular … Read more
My bearishness on the U.S. dollar index (DXY0) continues as two currency positions in particular have delivered against the U.S. dollar. A month ago I wrote about the Turkish Lira (USD/TRY) and suggested that the high-yielding currency pair would eventually crack below support at its 200-day moving average (DMA). USD/TRY delivered at the end of … Read more
The verdict is almost in: the Turkish lira is overcoming its headwinds. After the results of Turkey’s constitutional referendum in mid-April, the Turkish lira bounced around in indecision. Against the U.S. dollar, the indecision ended in conjunction with the April 28th release on monetary policy from the Central Bank of the Republic of Turkey (CBRT). … Read more