Month: February 2009

Back on the Defensive

Lucky for me, I missed the ass kicking in equities, and with a new row of O’s being formed, cash is king until the financial sector stops free falling.

February 10, 2009 February 10, 2009 By charlie In , Comments Off on Back on the Defensive

Quote Critique

“The difference between genius and stupidity is that genius has its limits.” -Anonymous Consciously creating virtual material has been put on the back burner during my stay in NYC, causing me to crave a smartphone or netbook.  Catching up with good friends and making new contacts leaves little time to contemplate and write.  Time to…

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February 10, 2009 February 10, 2009 By charlie In Comments Off on Quote Critique

Simplifying the Daunting

In an effort to create better charts, I’ve changed some of the variables to create a cleaner visualization of the Bullidex. The red lines are Bollinger bands set 3σ from the purple 5sma. The new green X in the right most column indicates decreasing volatility coupled with a higher percentage of stocks rising in the…

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February 10, 2009 February 10, 2009 By charlie In , Comments Off on Simplifying the Daunting

Quote Critique

If you want to raise a crop for one year, plant corn.  If you want to raise a crop for decades, plant trees.  If you want to raise a crop for centuries, raise men.  If you want to plant a crop for eternities, raise democracies. – Carl A. Schenck (German forester, 1868-1955) I’m a meat…

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February 9, 2009 February 9, 2009 By charlie In Comments Off on Quote Critique

Signs of Recovery

Despite the media frenzy over high unemployment and other worrisome economic headlines, there are signs the global markets are stabilizing, and that risk taking is increasing.  I have a shit ton of charts to prove this point, way too many for the average Joe, so I’ve narrowed it down to 5 for this post.  If…

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February 9, 2009 February 9, 2009 By charlie In , , , , , , , , Comments Off on Signs of Recovery

Quote Critique

“Don’t put all your eggs in one basket.” – (Market maxim) “Put your eggs in one basket and watch the basket.” – (An alternate strategy) The first quote touches on the necessity of diversification, but the second approach has a more realisitc attitude towards investment.  Diversification is a wonderful thing, but it entails more than…

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February 5, 2009 February 5, 2009 By charlie In Comments Off on Quote Critique

Mixed Markets with a Glimmer of Hope

The markets remain choppy and dangerous, but the NASDAQ Summation Index is showing signs of strength.  For those unfamiliar with the NASI, I suggest reading the material from stockcharts.com here.  Quite simply, a rising index printing X’s is good for buyers while sellers want to see declining O’s. As you can see on the far…

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February 5, 2009 February 5, 2009 By charlie In Comments Off on Mixed Markets with a Glimmer of Hope

Quote Critique

“The punishment of wise men who refuse to take part in the affairs of government is to live under the government of unwise men.” – Plato (Greek philosopher, 427-347 BC) A wise man living under the rule of fools may suffer if he does not adapt to the custom and whim of his leaders.  Yet,…

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February 4, 2009 February 4, 2009 By charlie In 1 Comment

The Power of Technical Analysis

The market is controlled by the smartest people with the most money.  Their actions inform the direction of capital, providing an edge to participants who follow the trend. This iteration of the SPX Buywrite : SPX ratio goes back to 2006, and is shown in non-linear time.  The distance between years on the X axis…

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February 4, 2009 February 4, 2009 By charlie In , Comments Off on The Power of Technical Analysis

Quote Critique

“A day will come when all nations on our continent will form a European brotherhood… A day will come when we shall see… The United Sates of Europe… reaching out for each other across the seas.” – Victor Hugo (French novelist, playwright, Hunchback of Notre dame and Les Misérables, 1802-1885) Impressive.  Hugo foresaw the creation…

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February 2, 2009 February 2, 2009 By charlie In 4 Comments