Posts filed under “Trading”

Gold Turns Negative Year-to-Date; Stocks to Follow

Equity markets started off this year by falling. They rallied in February, working their way back into the green. The Standard & Poor’s 500 Index now is up about 1 percent for the year.

Gold has traveled the opposite path: The yellow metal began at about $1,175 an ounce. By Jan. 23, it had rallied to almost $1,300. In February, gold slipped about $60 and the fall continued this month. Gold now is down about 1.6 percent year-to-date and it wouldn’t be a surprise if the precious metal fell more this month.  “March has a history of being the worst” month for gold, according to Bloomberg. During the past four decades, on average, bullion futures decline 1 percent in March. “Prices fell 65 percent of the time, more than any other month.”

gold chart

The reason gold prices can’t seem to gain any traction are many: Job creation has been robust, inflation is low and the Federal Reserve is widely expected to begin the process of easing back on monetary accommodation — strengthening the dollar and further reducing gold’s appeal.

As we noted late last year, the gold narrative has failed. The promised hyperinflation that was supposed to send gold soaring never arrived. Instead, we had disinflation, with a threat of global deflation.

Other stories were posited by traders who were long on hope but short on cogent analysis . . .  Continues here

 

Category: Cognitive Foibles, Gold & Precious Metals, Really, really bad calls, Trading

Interactions among high-frequency traders

Category: Regulation, Think Tank, Trading

History of High-Frequency Trading

Source: Investoo

Category: Digital Media, Quantitative, Trading

Why Gold & Oil Are Trading So Differently

Category: Commodities, Energy, ETFs, Gold & Precious Metals, Media, Technical Analysis, Trading, Video

Tracking Inside Info in ‘Fight Club’ Ring

From Bloomberg Graphics: Nine people were convicted for trading on inside tips about Dell and two other tech firms, including five who were part of a group dubbed the “Fight Club.”* Three of those convictions are on appeal. A Dell insider named in those trials, Rob Ray, wasn’t charged and denies wrongdoing. Source: Bloomberg Graphics

Category: Digital Media, Legal, Really, really bad calls, Trading

Bad Habits of Unprofitable Traders

Steve Burns posted a nice list of rules for traders. It is a worthy addition to our prior lists of rules (most recently, here; all previous rules here)   10 Bad Habits of Unprofitable Traders 1. They trade too much. 2. Unprofitable traders tend to be trend fighters, always wanting to try to call tops…Read More

Category: Rules, Trading

Category: Technical Analysis, Think Tank, Trading

Stock Market Crash of October 29, 1929

The crash in 1929 followed a 6 year bull market that saw the Dow gain some 350% in just 6 years. The 89% crash wiped out just about all of it.

From History.com:

On October 29, 1929, Black Tuesday hit Wall Street as investors traded some 16 million shares on the New York Stock Exchange in a single day. Billions of dollars were lost, wiping out thousands of investors. In the aftermath of Black Tuesday, America and the rest of the industrialized world spiraled downward into the Great Depression (1929-39), the deepest and longest-lasting economic downturn in the history of the Western industrialized world up to that time.

 

Black Thursday brings the roaring twenties to a screaming halt, ushering in a world-wide an economic depression.

Category: Markets, Trading, Video

Market Sell Off May Not Have Run Its Course Yet

The change in tone in the equity markets is unmistakable: There is a palpable tension that leads some money managers to shoot first and ask questions later. The net result of that anxiety can be seen in the flood of new money into U.S Treasuries, which ever so briefly drove the yield on the 10…Read More

Category: Cycles, Investing, Markets, Trading

Correction or New Bear Market ?

Here we are, 10-plus months into the year, and we have nothing to show for it. At least, that is the case if we measure our progress by the gains (or losses) of the Dow Jones Industrial Average. The index is now unchanged for the year after last week’s losses. The previously one direction market…Read More

Category: Cycles, Investing, Quantitative, Trading