ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The U.S. dollar’s jagged rally from last year’s lows has finally brought it back to its “QE2 reference price.” At the same time, a carry trade seems to be lifting the Australian dollar in “risk-on” fashion. In the background, the Japanese yen is slowly but surely reasserting itself as the strongest of the major currencies … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on July 1, 2012. Click here to read the entire piece.) Thanks largely to the surging euro, the U.S. dollar index (UUP) took one of its nastiest one-day tumbles since last October, falling 1.3%. I believe this drop all but confirms staunch … Read more
I earlier argued that the Japanese yen held a critical piece of the puzzle to determining what’s next for risk attitudes (see “The Japanese Yen And Volatility Sit At The Cusp Of Renewed Risk Aversion”). On Monday, the yen seemed to confirm that risk aversion is indeed returning and likely to stay with us for … 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
(This is an excerpt from an article I originally published on Seeking Alpha on June 19, 2012. Click here to read the entire piece.) {snip} I was looking for confirmation of the increasingly bullish outlook, but I did not get it. In “Bearish Implications of A Rare Convergence of Extremes in Yen vs S&P 500 … Read more