Archive: July, 2011

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Investors should be cautious as we are entering a historically volatile period for the market.

The list of stocks that aggressive traders or investors should get long must involve short sellers.

This study validates what my experienced mind has been whispering to me this entire week.

Companies like NFLX don’t top on bad earnings numbers.

The markets are always speaking to you. Every single day.

Here’s the script: Tomorrow is most likely going to stink. I am seeing a lot of people who think the gap down (more than likely we’ll see a gap down unless something transformational happens by the time I wake up tomorrow) should be bought. I don’t think it should be bought. Neither do I think [...]

I am zooming waaaaayyyyy out and looking at the monthly charts

The lack of interest in these stocks is a good thing for anyone who is bullish on the markets.

The financial markets are one of the few places where every aspect of behavior, valuation, and price movement is broken down into quantifiable terms. There are ratios to measure valuations. There are ratios to measure the ratios of valuation. There are a myriad of statistics to measure how investors are feeling on a particular day, [...]

Realize that your logical mind is being stalked by the financial market.

Past mid-day today, I updated Twitter saying I was adding to long exposure via broad market ETFs. I have said numerous times over the past couple of weeks that I highly doubt we will test the June lows. We got close enough to those lows today in the S&P that I thought the risk/reward warranted [...]

An abundance of logical thinkers in any investment immediately distorts the process behind creating or destroying value.

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Netflix, Linkedin, government and the month of July

When I feel that level of confusion and am that far off my road map, I’d rather just step aside and regroup

Took a roughly 2.60 point loss on VHC short at 39.60. All out. The price isn’t doing what its supposed to around key points. I’ll go into this further tonight. Not a fan of carrying a loss on a short-term position for two days while the price is playing confusing games. Rather move onto a [...]

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On June 15th, I said the following: “Bottomline: Either way you look at it, your risk from these levels is extremely well defined. Barring a statistical “black swan” type of event, the odds of profit heavily favor buying into some long positions here. If you want to get fancy, you can wait for a break [...]

It’s not just in VHC. I see a short seller panic taking place in many of the heavily shorted names. Momentum players have been entering the picture, as well. This, of course, makes life much more difficult for short-sellers as they see a new round of buyers step in to take the price higher. We’ve [...]

Sold short VHC at 36.97 for a trade. Have one more allocation if need be.

There are 10 million different methods of determining whether a company is ripe for an investment.

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I’m putting a lid on the NFLX vs. AAPL performance study. In February I said that during the expected correction that was to come, NFLX would outperform AAPL due to the market dynamics involved and the support mechanism it would create for NFLX. It wasn’t a study of how delivering movies was a better business [...]

One more bout of truth that the market lays on investors. It’s only that investors don’t get it. They never get it. They like to think of the market as a logical mechanism for pricing companies. A market where sophisticated men and woman from outstanding educational backgrounds come to flex their cranial muscle. A logical [...]

At any single moment in the financial markets there are two voices in operation. The voices come along with anticipation and desire for what is to be expected from the markets in the coming days, weeks or years. One voice is constantly on the receiving end of betrayal and deception. The other speaks the truth. [...]