Fertile Ground for Speculation

    “When you take your initial position, you have no idea whether you’re right or not. What’s exciting is if it starts to go your way. Now that’s thrilling.”                     –Paul Tudor Jones Last week’s key session was that of Thursday, when price put in a wash-and-rinse... [more]

Ruffling of Feathers

“Take your losses quickly and don’t brood about them. Try to learn from them but mistakes are as inevitable as death”. –Jesse Livermore Shares darkened the moods of some on Thursday, though the market had risen 10 times in 13 tries and was due for an unwind. Wednesday’s disappointment in some... [more]

Daylight

“I never try to predict or anticipate. I only try to react to what the market is telling me by its behavior.” –Jesse Livermore The week-ago report of June 10 spoke of the market beginning to ignore bad news, the S&P putting in a major accumulation day, and leading stocks forming 5-week-plus bases. The price/volume sequence... [more]

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]