Archive | March, 2012

Stocks Look to Next Game after Patting The Nanke on the Back

Whenever you get a group of experienced market operatives in the same room, I guarantee you that the stories of hard times far outnumber the stories of good times.  It’s only natural that surviving traders and other decision makers would be humble, at least amongst their own – as the old saying goes: “there are no [...]

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U.S. Fed Funds Signaling Impending Interest Rate Rise

 The U.S. Fed Funds futures contract reversed its primary trend last month, potentially signaling the end of ultra-low U.S. interest-rates and the Keynsian policies which fostered them – see Figure 1. Figure 1  Bearish Weekly Reversal in Fed Funds Fed Fund futures have been in a pronounced uptrend since August of 2007 when they broke out [...]

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The Euro: A Bear amongst Bulls

If you were to drop two coins of the same size from the same height at the same time into a pond the waves created by that energy would be coordinated and the resulting waves would converge, effectively doubling the size of the waves as they spread out across the pond. In physics this phenomenon [...]

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The S&P 500 / Aussie Correlation & Fractal Geometry

The S&P 500 and the Australian Dollar have a strong positive correlation because they are both widely held and heavily traded asset class markets. Not only do they often move in lock-step on the higher time frame weekly and daily charts – see figure 1—but true to the fractal nature of markets they also hold [...]

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