Thursday, March 19, 2009
Tiring
Markets seem to be getting tired after yesterday's larger volume move. The trend is still higher and there are 1854 advancing stocks vs 1054 decliners right now, so the short side should be approached cautiously.
Wisdom
Wisdom is not a product of schooling but of the lifelong attempt to acquire it.
~Albert Einstein
~Albert Einstein
Wednesday, March 18, 2009
Charts Ahead of the Fed
The rising 5 day moving averages show the path of least resistance continues to be higher in the intermediate term. Early short sellers are learning the same lessons that the early buyers below the declining 5 DMAs learned over the last month, it doesn't pay to fight the trend. With the Federal Reserve statement coming at 2:15PM the primary objective should be risk management and making sure you have a strategy to realize long side gains of the last week.
Where has the market come from? Large rally of the last week has not seen any real profit taking.
Where does it have the potential to go before it is likely to meet a source of supply which may slow the ascent? Current levels have been important support/resistance recently.
Where has the market come from? Large rally of the last week has not seen any real profit taking.
Where does it have the potential to go before it is likely to meet a source of supply which may slow the ascent? Current levels have been important support/resistance recently.
Character
People do not seem to realize that their opinion of the world is also a confession of character.
~Ralph Waldo Emerson
~Ralph Waldo Emerson
Tuesday, March 17, 2009
Buy Howard Lindzon's Book If You Like Money
One of the biggest problems with Wall St is the lack of independent thinking. It seems as though any good idea gets piled on until it no longer works and then the game becomes one of blame and excuses of a “perfect storm which couldn’t be avoided”, etc. The lack of personable responsibility can be sickening if you pay much attention, which I try not to do. I find it more refreshing to listen to truly independent “visionary” types who move forward with a positive attitude.
At the top of the list of those with insightful observations is my friend Howard Lindzon. If you don’t know Howard, he is entrepreneurial, smart, outspoken and funny; a great combination in this industry full of “stuffed shirt” types. Because of these characteristics, Howard has become quite successful in creating many businesses. I am not trying to kiss Howards ass, just let you know the background and the point of view he writes from in his excellent book “The Wallstrip Edge”. Howard isn’t a chart guy like me, but his strategy of buying good brands combined with strong price momentum makes sense to me from an investing point of view. Something that we both agree upon is managing risk, you cannot just buy and hold, and Howard devotes an entire chapter to money management.
I am not going to do a long review of the book, instead I am going to ask you to trust me that it is a well spent $25 if you take the market seriously. You can buy the book on his WEBSITE
At the top of the list of those with insightful observations is my friend Howard Lindzon. If you don’t know Howard, he is entrepreneurial, smart, outspoken and funny; a great combination in this industry full of “stuffed shirt” types. Because of these characteristics, Howard has become quite successful in creating many businesses. I am not trying to kiss Howards ass, just let you know the background and the point of view he writes from in his excellent book “The Wallstrip Edge”. Howard isn’t a chart guy like me, but his strategy of buying good brands combined with strong price momentum makes sense to me from an investing point of view. Something that we both agree upon is managing risk, you cannot just buy and hold, and Howard devotes an entire chapter to money management.
I am not going to do a long review of the book, instead I am going to ask you to trust me that it is a well spent $25 if you take the market seriously. You can buy the book on his WEBSITE
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