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 January 28, 2013. Click here to read the entire piece.) When the Bank of Japan (BoJ) announced its latest statement on monetary policy in conjunction with the Japanese government, the yen (FXY) strengthened counter to the trend over the past several … Read more
This is an excerpt from an article I originally published on Seeking Alpha on January 15, 2013. Click here to read the entire piece.) The Japanese yen (FXY) experienced a quick plunge after Akira Amari, Japanese economic and fiscal policy minister, expressed concern about the yen getting too weak. According to The Japan Times Online, … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are highly likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades … Read more
Last week, I expected that heightened Fiscal Cliff fears would lead to renewed interest in buying the Japanese yen (see “Peering Over The Fiscal Cliff, The Yen Gets ‘Cheap’, Australian Dollar ‘Expensive’“). That interest turned out to be VERY temporary. As post-Christmas trading opened, the U.S. dollar surged yet again against the yen (FXY). It … Read more
Today, market traders are noting that the yield on 10-year Japanese government bonds, also known as JGBs, dropped to 9-year lows at 0.72%. This weakness in yields stands in stark contrast to the Japanese yen’s (FXY) spate of weakness over the past two months and especially over the past two weeks. A week ago, I … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on November, 2012. Click here to read the entire piece.) Japanese yen (FXY) traders have been here before. Earlier this year, the U.S. dollar (UUP) ripped from historic lows against the yen around 76 to a peak just above 84 in just … Read more
(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are highly likely to reverse. To learn more about it, see my T2108 Resource Page. You can follow real-time T2108 commentary on twitter using the #T2108 hashtag. T2108-related trades and other trades … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on October 25, 2012. Click here to read the entire piece.) This week, the S&P 500 (SPY) has broken down, providing an early warning that QE3 is not working as expected. The S&P 500 is resting precariously at support formed by the … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on September 19, 2012. Click here to read the entire piece.) In “Enhancement of Monetary Easing” the Bank of Japan (BoJ) rushed to match the Federal Reserve’s renewed commitment to printing money to resolve economic malaise. This is not the intervention I … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on September 14, 2012. Click here to read the entire piece.) In the Federal Reserve’s latest statement on monetary policy, Chairman Ben Bernanke basically announced that the Fed is giving the economy a blank check: {snip} This forceful action is likely much … Read more