Posts filed under “Trading”
Fall from recent highs
Some of the most prominent names in technology are getting shellacked today. These companies got way ahead of themselves and now they are, well, to be polite, let’s just call it “retrenching,” as they give up a large percentage of their gains.
I don’t think that Twitter Inc., LinkedIn Corp., Netflix Inc. or Tesla Motors Inc. are the force that has been driving the market higher — but they certainly garner an enormous amount of attention from the trading public and financial press.
It’s noteworthy that Google Inc. and Facebook Inc., ostensibly two of the industry’s leaders, are off only about 3 percent and 5 percent, respectively, having made up some of their earlier losses.
But let’s not put lipstick on this pig. The technology sector was down almost 2 percent today while the broader market is down less than half a point. And while technology is off a little more than 4 percent from its peak, as you can see, some names are just getting knocked down from their peaks.
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…Read More
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
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
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
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
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
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