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]

Correction

“The whole idea is to somehow get an edge. Sometimes it takes a little extra something to get that edge, but you have to have it.”    –Don Shula Shares remain in decent shape, with the Nasdaq and S&P both off 1.7% from their recent peaks. The selling of last week was minimal. Friday’s jobs number will... [more]

Steady as She Goes

“Speculation is essential not merely in the market for stocks, but in any market. Somebody must take chances.”                 –William P. Hamilton, 1906 Volume picked up last week as the Nasdaq put in four straight losing sessions. Despite this, institutions do not show signs of anxiety over a party that tacked up gains for Q1 that would normally... [more]

The Pause

“Don’t confuse brains with a bull market.”         –Humphrey B. Neill Shares pause to catch their breath as volume and volatility dim. The Nasdaq outperforms in four of the last five sessions. Meanwhile, the speculative growth-stock glamours continue to regain their past glory. ... [more]

Plodding Ahead

“In trading…the person who can easily admit to being wrong is the one who walks away a winner.” –Victor Sperandeo, “Market Wizard” Shares remain in good shape. Breadth and leadership are quite strong, enough so that any intermediate-term correction that occurs should be just that, a correction, and not the end of the... [more]

Snapping Back

“If you pay attention to what the market is saying rather than forcing your will on the market, it will give you subtle clues as to what it is going to do. There is always a message but you are not going to pick it up unless you have an open mind.”                      –Linda Bradford Raschke, “Market Wizard” Shares wasted... [more]

Taking a Breather

“…the inherent nature of a competitive market does not change very much over the years…’the same old patterns’ of human behavior continue to produce much the same types of market trends and fluctuations.” –John Magee, Technical Analysis of Stock Trends, 1966 Under the cover of averages that essentially went east... [more]

Moderation

“It is better to be roughly right than precisely wrong.” –John Maynard Keynes Demand for stock has moderated over the past week. As seen in the below chart, this is accompanied by an easing of the advance’s trendline. ... [more]