Posts filed under “Trading”

How Market Tops Get Made

With all the bubble chatter and talks of over-valued stock markets, I thought it was time to have a discussion with someone is the expert on the subject. In this case, that person would be Paul Desmond, chief strategist and President of Lowry’s Research.

Desmond has spent the past five decades analyzing markets; his research is widely regarded as both unique and insightful, winning numerous awards from various Technicians groups. If you want additional background into his thinking process, have a read of this long interview I did with him in 2006 (Part I and Part II)

What I really love about his work is how empirically driven it is.

I spoke with him recently, chatting about his work in identifying market tops. Rather than focus on the usual noise Desmond, suggests anyone concerned about a top should be watching for very specific warning signs. He notes the health of a bull market can be observed by watching internal indicators that provide insight into the overall appetite for equity accumulation.

These four include:  (Continues here)

Category: Markets, Technical Analysis, Trading

Regulation NMS & Stock-Trade Complexity

Source: WSJ

Category: Regulation, Trading

Look Out Below, Chinese Ted Spread Edition

Equity futures are under pressure this morning as concerns about a shadow-banking credit crunch in China increase. A Chinese credit-market risk gauge is hitting new highs amid growing concerns that leverage and credit risk have reached unsustainable levels. Observers are comparing this to the widening in the Ted spread — a measure of risk in…Read More

Category: Credit, Markets, Trading

Nine Surprising Things Jesse Livermore Said

There are those who would convince you that it is somehow smart or in your best interest to be manically switching your investments around, back and forth, long and short, on a daily basis. To pay attention to this kind of overstimulation is the height of madness, even for professional traders. The most storied and…Read More

Category: Apprenticed Investor, Trading

Everything You Need to Know About Stock Market Crashes

Since everyone is talking about stock market crashes this week, let’s add some context here… Since the invention of the Dow Jones Industrial Average at the turn of the last century, there have been eleven instances in which stocks declined by more than 35% from peak to trough, or what you would term a market…Read More

Category: Investing, Markets, Trading

All Time Top 10 Hedge Fund Managers

Source: FT

Category: Hedge Funds, Investing, Trading

Attention All Astro-Traders & Financial Astrologers!

Attention All Astro-Traders & Financial Astrologers!

That was the subject line of an e-mail that hit my inbox yesterday. It was curious enough that, unlike most of the junk sent my way, I went to Google to see what and who it was all about.

The discussion was forwarded to me by a successful trader I know in the Seattle area, with the observation “It is amazing the lengths people will go to in seeking predictability” along with the tongue-in-cheek comment, “I always wanted to be an astro-trader!”

The e-mail was about a “long awaited” book — really a trading course — titled “Secrets of the Chronocraters,” by Dr. Alexander Goulden. The e-mail boldly claimed this work is the “DEEPEST & MOST ADVANCED work on Financial Astrology ever written!” Which to my skeptical mind, is like arguing which real housewife of New Jersey is the most probable winner of next year’s Nobel Prize in Physics.

Did I mention it is now on sale at the low, low price of $3,600? That seems like a perfectly fair price for “a concise, applied manual, which will predict market trends and turns like nothing else.”

Column continues here

 

Full email after the jump

 

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Category: Really, really bad calls, Trading, UnScience

Is The January Barometer Worth Following?

    As January goes, so goes the year?” That is the pithy version of the January Barometer. First identified by Yale Hirsch of the Stock Trader’s Almanac, it suggests a correlation between January’s performance and full-year returns. I am not a believer in the many omens Wall Street traders tend to obsess about, including…Read More

Category: Markets, Technical Analysis, Trading

Friday Was a 90/90 Day. What That Means

Last week ended on quite the down note. Friday’s big selloff saw the Dow Jones Industrial Average drop 2 percent, or 318.2 points. The Standard & Poor’s 500 Index fell 2.1 percent (38.2 points), while Nasdaq Composite Index declined 2.2 percent (90.7 points). The technically significant issue was that Friday was a 90/90 day —…Read More

Category: Technical Analysis, Trading

The Bull Market Ends (or Is It Just a Correction?)

We awoke this morning to see futures deep in the red. Over the past two weeks, markets seem indecisive, unable to make much progress. Lots of days began with positive trades, only to roll over and fall into losses. Several days that began in the red closed negative, though usually off their worst levels. Last…Read More

Category: Data Analysis, Investing, Technical Analysis, Trading