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]

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]