“Whenever a well-known bearish analyst is interviewed [Cover story] in the financial press it usually coincides with an important near-term market bottom.” – Clif Droke (Clifdroke.com, 11/15/04) When it comes to bear markets, selling the rumor and buying the news is a counter intuitive and frustrating proposition for novice traders. The market action explains the…
I’ve been skeptical about RIMM’s prospects for as long as I can remember, and today demonstrated why I’m unwilling to hold stocks like this overnight. There might be a bounce in the works, but with this market being whipped about by coked out traders and depressed investors, I’m not really interested in participating. The psychology…
Since mid December 2008, GLD has been making higher highs and higher lows, signaling an uptrend. Volume is increasing on up days, and diminishes during down days, conditions ideal for investors. Coupled with technical strength, the fundamentals look good as economic turmoil and government stimulus drive this investment thesis. From a risk management perspective, a…
Good luck is what happens when preparation meets opportunity, bad luck is what happens when lack of preparation meets a challenge. – Paul Krugman (Economist, NY Times 3/3/2006) I’m no fan of Dr. Krugman, but his intelligence shines forth in this quote. Luck favors the prepared. Mentally anticipating change is adaptive, necessary for being a…
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.
“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…
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…
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…
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…
“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…