Monthly Archives: November 2012

US SP 500 – Filthy Stop Out

What’s wrong with this picture? US SP 500 – 5 Minutes

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Posted in Market, Shares, Stocks, Trading | Tagged , , , , | 35 Comments

Australia 200 and Santa Claus

You don’t have to believe in Santa Claus to receive Christmas gifts from the Australia 200 index. Solid fundamentals and investment metrics, share market pricing of risks I don’t believe will eventuate, and an improving global scenario point towards a … Continue reading

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Posted in Market, Shares, Stocks, Trading | Tagged , , , , | 7 Comments

China Shipping Container Lines (2286) – sell set up

This chart caught my attention today as a potential example of a classic continuation triangle.

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End of The Year Gold Price

In the financial community I have found that one of the most effective ways to start a fight is to discuss the outlook for gold. Possibly because there are so many sub-arguments that it can lead into. Fed good. Fed … Continue reading

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Posted in Gold | Tagged , , | 3 Comments

AUD/JPY – A Tale of Mean Reversions

Trading based on mean reversion is a strategy that is often done at the wrong times and requires a goodly degree of courage even at the right times. Why the courage? Because you are selecting a turning point in the … Continue reading

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Posted in Forex | Tagged , , , | 4 Comments

AUD/CAD – Shoulder, Head, Shoulder?

Since the second week of October, the AUD is up 5 big figures (more than 5%) against the CAD. Given both currencies are considered commodity currencies, and have many similar macro drivers, this is a significant move. An evolving approach … Continue reading

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Posted in Forex, Market, Trading | Tagged , , , , , , , | 3 Comments

Ready Reckoner for Index Pairs

As you have seen over the course of this week, one of the keys to working on this strategy is to find well correlated pairs. You have seen that things like the Australian banks and RIO and BHP are good … Continue reading

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Pairs Trading – Buy BHP, Sell RIO

The recovery in iron ore prices since August appears to have driven an outperformance by RIO over BHP in Australia. However, both companies are also listed in London, and the degree of the outperformance is significantly smaller. Combined with stronger … Continue reading

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Gold and Platinum

The Platinum price has recently been at its lowest level compared to Gold in over 16 years. This looks like an opportunity for pairs traders prepared to “stalk” this trade and keep an eye on the relationship between these metals.

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Posted in Gold, Market, Trading | Tagged , , , , , , , | 3 Comments

USD: JPY – Short term Head and Shoulder

Market reaction was minimal when the Bank of Japan left monetary policy unchanged today. Even so, the yen has had a steep descent following news of an election in Japan leading to expectations of more “dovish” members being appointed to the BOJ. We’ve arrived at a situation where, the 4 … Continue reading

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Posted in Forex, Market, Trading | Tagged , , , , , | 2 Comments