Month: May 2009

Quote Corner

If you can buy more of your best idea, why put [the money] into your 10th-best idea or your 20th-best idea? The more positions you have, the more average you are. – Bruce Berkowitz (Fairholme Fund, Barron’s 3/17/08)

NASDAQ 100 Bullidex ($QQQQ)

The NASDAQ 100 continues to fair much better than the S&P 500, exhibiting lower volatility with more rising stocks. How long this will last is undetermined, but it is best to wait for a trend change rather than anticipate it. I remain bearish on the S&P 500, and though I’m technically bullish on the NASDAQ…

Twitter Ticker ($UNG)

Today’s StockTwits chatter was dominated by the big move in natural gas. Down nearly 80% after falling for nine CONSECUTIVE months, UNG is beginning to show real signs of life. While it is too early to say the bear market is over in this sector, a new row of X’s and a monthly close higher…

All Time High Short Squeeze ($TUX)

Trian Aquisition is a blank check buyout company, so their business model is incomprehensible at best. Nevertheless, the intangible wealth of TUX is far more alluring than concrete inventory, and a stock at all time highs with a short float of 60% is a good place to took for emotional upward momentum. STEC has made…

Quote Corner

The political problem of mankind is to combine three things: economic efficiency, social justice and individual liberty. – John Maynard Keynes (British economist, 1883-1946)

Twitter Ticker ($GM)

The chatter on StocktTwits concerning General Motors is a guessing game on the future of the DJIA. What corporation will fill the gaping maw left by the defunct GM? The writing has been on the wall for many months, if not years. Since November of 2007, Grotesque Misery ALWAYS traded below a declining 20sma, often…

Quote Corner

Market risk tends to be poorly rewarded when market valuations are rich and interest rates are rising. – John P. Hussman, Ph.D. (Hussman Funds, 5/22/06)

S&P 500 Bullidex ($ES_F $SPY $SPX)

This post is graphic heavy but the message is clear, increased shorting and liquidity are the modi operandi. Until these charts begin to print X’s, the S&P 500 is not a safe investment. Volatility is increasing relative to the number of strong performing stocks, reducing the odds of successful investment as market breadth wanes unfavorably….

Quote Corner

You have to keep digging, keep asking questions, because otherwise you’ll be seduced or brainwashed into the idea that it’s somehow a great privilege, an honor, to report the lies they’ve been feeding you. – David Halberstam (American writer, war reporter, 1964 Pulitzer Prize, 1934-2007)

Quote Corner

Follow the course opposite to custom and you will almost always do well. – Jean-Jacques Rousseau (Swiss philosopher, 1712-1778)