Encouragement

  “Chance favors the prepared mind.” –Louis Pasteur, 1854 Shares showed encouraging behavior last week, with the Nasdaq bouncing off its 200-day line. The key distinction was not the 200-day bounce, but that price found support so soon after it undercut the low of... [more]

June Gloom

“You don’t look for reasons to trade. You look for reasons not to trade. By having that mindset, you eventually reach a point that when you do pull the trigger the emotion is gone and you have confidence in what you are doing.” — James Hearndon   Shares rolled over pitifully last week, nullifying a six-day attempted... [more]

It’s A Mad World

  “Although the cheetah is the fastest animal in the world and can catch any animal on the plains, it will wait until it is absolutely sure it can catch its prey. It may hide in the bush for a week, waiting for just the right moment. It will wait for a baby antelope, and not just any baby antelope, preferably one that is sick or lame. Only then, when... [more]

Scattered Showers

  “Although the cheetah is the fastest animal in the world and can catch any animal on the plains, it will wait until it is absolutely sure it can catch its prey. It may hide in the bush for a week, waiting for just the right moment. It will wait for a baby antelope, and not just any baby antelope, preferably one that is sick or lame. Only then, when... [more]

A Normal Correction

“I would rather have good money management and a mediocre strategy than mediocre money management and a good strategy. That’s your defense and tells you how much you’re going to make.” –Mark Boucher Shares, fresh from a fortnight of repair to their tainted chart patterns, came under a renewed assault Thursday and Friday,... [more]

QI 4

“Besides trading, there is probably no other profession where you have to admit you’re wrong. In trading, you can’t hide your failures. Your equity provides a daily reflection of your performance.” –Victor Sperando, “Market Wizard” In our last report of a week prior, it was... [more]

A Cautious Market

  “The proof in the pudding is always the price/volume action Last week was spent recovering from the deluge of the prior two. To expect anything more than just a chance for the averages to catch their breath may have been asking too much. There were a couple of mild positives technically. First, there was... [more]

Quiet Improvement

“Besides trading, there is probably no other profession where you have to admit you’re wrong. In trading, you can’t hide your failures. Your equity provides a daily reflection of your performance. –Victor Sperando, “Market Wizard” In our last report of a week prior, it was mentioned that “There remain... [more]

Rustling of the Leaves

“They say you never grow poor taking profits. No, you don’t. But neither do you grow rich taking a four-point profit in a bull market.”             –Jesse Livermore, “Reminiscences of a Stock Operator” Last week witnessed three Nasdaq distribution days and one for the S&P. The Naz is now in a 5.1% reaction off the top;... [more]

An Orderly Descent

“Old Baron Rothschild’s recipe for wealth winning applies with greater force than ever to speculation. Somebody asked him if making money in the Bourse was not a very difficult matter and he replied that, on the contrary, he thought that it was very easy… “I will tell you my secret if you wish. It is this: I never buy at the bottom and I always sell too soon.”... [more]