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The Signal and the Noise

By: Erik Swarts | Tuesday, February 26, 2013

To put it mildly, there are some interesting kinetics developing in the currency markets these days. And although the Monday morning pundits will point to XYZ to fit their respective bylines, the truth is these currency moves - the euro, Aussie, the US dollar to name a few; have been building for quite some time. We should know, we have eagerly watched their potential energies build beneath the surface. It is why we had expected a binary environment in the currency and commodity markets - as tensions built in momentum and relative strength divergences and lulls in historic correlations. With considerable process to interpretation - rather than reaction, we find ourselves driving the train rather than colliding with it.

A few things to consider here:

Euro vs Silver
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2008 Euro vs 2013 Euro
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A Miirrored Pivot 2011 Euro vs 2013 Euro
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* All chart data initially obtained from www.stockcharts.com and subsequently rendered by Market Anthropology.

 

Author: Erik Swarts

Erik Swarts
Market Anthropology

Although I am an active trader, I have always taken a broad perspective when approaching the markets. I respect the Big Picture and attempt to place each piece of information within its appropriate context and timeframe. I have found that without this approach, there is very little understanding of ones expectations in the market and an endless potential for risk.

I am not a stock picker - but trade the broader market itself in varying timeframes. I want to know which way the prevailing wind is blowing, where the doldrums can be expected and where the shoals will likely rise. I will not claim to know which vessel is the fastest or most comfortable for passage - but I can read the charts and know the risks.

I am not a salesperson for the market and its many wares. I observe it, contextualize its moving parts - both visible and discrete - and interpret.

I practice Market Anthropology - Welcome to my notes.

Erik Swarts is not a registered investment advisor. Under no circumstances should any content be used or interpreted as a recommendation for any investment, trade or approach to the markets. Trading and investing can be hazardous to your wealth. Any investment decisions must in all cases be made by the reader or by his or her registered investment advisor. This is strictly for educational and informational purposes only. All opinions expressed by Mr. Swarts are subject to change without notice, and the reader should always obtain current information and perform their own due diligence before making any investment or trading decision.

Copyright © 2011-2014 Erik Swarts