Yes. Nice to see a pop from the protracted extremes. I show GBP hitting an extreme ST momentum low on 8 Aug and EUR to a lesser extent on 10 Aug. Because CAD, JPY, USD, and CHF didn't go deeply negative like GBP and NZD, they remain higher still. Cheers!
Short-term momentum ranking of the 8 major currencies: CHF CAD EUR JPY AUD USD NZD GBP Long-term momentum ranking of the 8 major currencies: CHF USD CAD JPY EUR AUD NZD GBP
Short-term momentum ranking of the 8 major currencies: CHF EUR CAD USD JPY GBP NZD AUD Long-term momentum ranking of the 8 major currencies: USD CHF CAD JPY EUR AUD NZD GBP
Short-term momentum ranking of the 8 major currencies: CHF EUR CAD USD JPY AUD NZD GBP Long-term momentum ranking of the 8 major currencies: CHF USD CAD JPY EUR AUD NZD GBP
Short-term momentum ranking of the 8 major currencies: CHF EUR CAD USD AUD JPY NZD GBP Long-term momentum ranking of the 8 major currencies: CHF USD CAD EUR JPY AUD NZD GBP
Short-term momentum ranking of the 8 major currencies: CHF EUR CAD USD NZD JPY AUD GBP Long-term momentum ranking of the 8 major currencies: CHF CAD USD EUR JPY AUD NZD GBP
Jon, So if I go long the top 4 and short the bottom 4 for as a basket...Where is my target? Should I just stay in till the next publish date of the next basket of longs and shorts and take profit and re-enter the new basket... I appreciate your persistant posting of these daily lists in ET. People do not understand the work and routine that goes into this day-in & day-out. But how to trade them? What are you selling? What happens when you stop publishing? I need you to publish for free as long as it is possible ok? (just kidding) Are you just doing this because you like math and numbers and you are a Savant? Do you trade? How do you trade this? ElectricSavant
Hey ES, Thank you for reaching out. Appreciate your comments and questions. These momentum lists are an extract of a very in-depth detailed dashboard report generated by my company. Aside from all the other metrics, if we just look at momentum there are multiple strategies that can be utilized- As you mentioned above, buying strength and selling weakness. This generally lends itself better to the long-term metrics. There is a tendency of persistence as can be seen with the highest ranks vs lowest ranks over a significant time frame. Another strategy is to transact long or short when instruments cross above or below "zero" momentum. In combination with specialized tactical tools, I've had a great deal of success deploying this strategy over the years. Additionally, when an instrument jumps or falls in momentum ranking across an asset class, this too can signal a shift in market sentiment and consequently acceleration or deceleration (which is also another in-depth reporting metric) and often provides lead time awareness of pending momentum reversals. While it is often observable, I don't rely on targets. As Mark Fisher would say -"How high is high? Who knows? How low is low? Who knows?" Everyone says cut your losses short and let your profits ride. With a proper strategy in place this enables being patient with profitable trades while being incredibly impatient with losses logic-based, thus very pragmatic. My preference is to rely on robust tactics that are price-centric for stops, which in my opinion is the most important element of a strategy. So I utilize stops that are self-adapting and which dynamically adjust to price and volatility without time constraints that function similarly as a stop-and reverse mechanism (Another metric in the reports). So while the posted lists on this site could have many uses it is my hope that they at least serve as an indicator or "barometer" of sorts to gauge what's happening in the market. It does take a lot of effort to generate these reports (A LOT of computer crunching after the market close) but I'm happy to continue doing so if people find them useful in their efforts. And to answer the "why" question- I spent too long (more than two decades) at top tier wirehouse, energy, airlines, and global merchant firms in trading, hedging, and risk management and finally came up for air on the other side. I love modeling, analysis, and trading. I feel like most people get shafted with the level of analytics they have so perhaps this is a way to share another approach. But I am not a Savant...that status is already reserved for you! Hope that answers your questions. Best, Jon
Long-term momentum ranking of the 8 major currencies: CHF CAD USD EUR JPY AUD GBP NZD Short-term momentum ranking of the 8 major currencies: CHF EUR CAD GBP USD NZD JPY AUD