Monthly Archives: May 2014
In trading, it’s best to quickly admit when you’re wrong.
If you can keep your losses to a minimum, you will be able to preserve your trading capital (along with your mental capital) and improve your odds of profiting from future opportunities.
As Jesse Livermore once said, “I have long since learned, as all should learn, not to make excuses when wrong. Just admit it and try to profit from it.“
Can you think of a time when admitting you were wrong saved you from prolonged agony or bigger trading losses? Did you ever turn the situation around or even go on to profit from it? Share your story with us in the comments and on .
This SPX daily chart should serve as an update to our February post, which highlighted a .
Since that time, we’ve seen some chop in the stock market as the SPX worked below, and back above, the magic line around 1,311. We saw an 85+ point rally off the March low near 1,250 on the S&P and have since sold off from the rally highs in early April.
Here’s an updated view of the weekly S&P 500 chart:
As we enter the 1st quarter earnings season, I’d like to highlight two posts from and on the current state of the market.
As you’ll note from their updates, neither trader is in a mood to put on new positions here. Rather, they remain in a patient “wait and see” mode as they gauge the strength of this market. Check out their thoughts in the links above.
After a recent consolidation along its 20 day moving average, Tesla (TSLA) closed at a new all-time high today.
As you can see from the daily and weekly charts, the runaway move started in April when TSLA broke out above the $40 level on large volume (over 7 times its daily avg. volume). TSLA soon consolidated that move and continued higher, amidst a stream of and a growing wave of “Elon mania” (see recent interviews, videos below), to its most recent prior peak in late May.
As of today, TSLA is up over 165% from its April 1 closing price.
After noting some weakness in several leading stocks (including TSLA) on StockTwits + Twitter late last month, I soon realized that . What I mistook for topping action was actually just a pause before this latest, new high. The uptrend continues…
discusses creativity, entrepreneurship and a new mode of travel (hyperloop) at Pando Monthly.
: The mind behind Tesla, SpaceX, and SolarCity.
Disclosure: as of this posting, I have no position in TSLA (and I have had no prior positions in TSLA) and am watching from the sidelines. This may change at any time. If any follow-up posts coincide with my holding a position (long or short) in the stock or in TSLA options, this will be noted within said posts.
John A. Allison, then acting CEO and Chairman of BB&T bank (now retired), gives at the University of Virginia’s Darden School of Business.
Why am I linking to this lecture by John Allison? Very simply, Allison’s excellent talk addresses a greatly overlooked theme in American business and life today: establishing one’s code of personal ethics.
Now what makes John Allison qualified to deliver such a lecture?
Allison, who we highlighted (and who the NY Times profiled) in our post,, grew the North Carolina-based BB&T bank by leaps and bounds while it gained plaudits from customers and the business community for its integrity and high rates of customer satisfaction.
While large banks and mortgage lenders across the country sank their customers, themselves, and our overall economy through their overexposure to residential housing and subprime mortgage loans, Allison and BB&T remained focused on ethical capitalism and engaging in “win-win” transactions that benefited the bank as well as its customers.
In his talks on “Leadership and Values”, Allison, an admirer of Ayn Rand’s philosophy of Objectivism, discusses the importance of integrity, examining your ethical framework, egalitarianism and moral relativism vs. objective truth, and the road to self- improvement.
We’ll let John Allison do the talking now. Check out the video above, or see this
One of the most talked about economic stories of the weekend was Jim Grant’s piece in the Wall Street Journal, .
In it, Grant discusses the rationale for a rather zippy (or “V-shaped”) recovery following this steep recession that began (officially) in late 2007. Here are some excerpts from that piece:
“The Great Recession destroyed confidence as much as it did jobs and wealth. Here was a slump out of central casting. From the peak, inflation-adjusted gross domestic product has fallen by 3.9%. The meek and mild downturns of 1990-91 and 2001 (each, coincidentally, just eight months long, hardly worth the bother), brought losses to the real GDP of just 1.4% and 0.3%, respectively…
…Americans are blessedly out of practice at bearing up under economic adversity. Individuals take their knocks, always, as do companies and communities. But it has been a generation since a business cycle downturn exacted the collective pain that this one has done.
Knocked for a loop, we forget a truism. With regard to the recession that precedes the recovery, worse is subsequently better. The deeper the slump, the zippier the recovery. To quote a dissenter from the forecasting consensus, Michael T. Darda, chief economist of MKM Partners, Greenwich, Conn.: “[T]he most important determinant of the strength of an economy recovery is the depth of the downturn that preceded it. There are no exceptions to this rule, including the 1929-1939 period.”
If you’d like to read more, see the full piece at the link above.
Related articles and posts:
1.– Finance Trends
2.– Finance Trends
3.– Financial Armageddon.
Traders and brokers signaling to offices at the Curb market, New York City, 1916. The in 1921 and, in 1953, became the AMEX.
Photo via .
Market chatter and action today has been (predictably) dominated by the spectacle of yet another Fed announcement day.
Today’s shocker: rates are, with talk (from the high priests in media and central banking) of some kind of unfolding economic recovery (one supported by “stimulus” and accompanied by rates for the next couple of years).
Actually, I spent very little time focusing on this subject today, aside from catching up with someand tweets on the market impact from the likes of , , and others in my Twitter stream.
Good to know there are people keeping up with some of this stuff (Fed’s impact on yield curves, equities) when you need a quick refresher and a bit of insight from those in the know. This is one of the areas in which my Twitter community and favorite blog lists really stand out.
I’m also checking in with(hot off the WordPress) for an overview of the day’s action and a look at what may lie ahead for the stock market in the coming days.
What I’d really like to do is revisit this January 2009 piece from Bronte Capital,, and find some more recent material on the differences between ZIRP Japan and ZIRP US in the late 2000’s. This is an area I could stand to learn more about, so look for updated notes in the comments section (or please add thoughts/links of your own).
To hell with the TV news, I will be searching the blogosphere and online print and journals for more on this.
Trading on the stock market has improved in the past. Now, investors have a demat account for trading. This increase has resulted in many benefits for investors. With the help of online trading account, investors can instantly share your book.
Investors can make more profit with the account; they can now take immediate ownership of its shares, the transaction is guaranteed via the Internet, no delivery wrong signature does not match, easier and more dependent subscribe shares, access to your account anytime, from anywhere place, and more. This online trading account so helps investors overcome many obstacles during the traditional money-way trade and investment. Runners also reduced since the days of online trading has been introduced. Another benefit is to avoid confusion in the title of ownership of securities and easily accept IPO (ration common problem).
An image of one of many beautiful paintings & sketches seen at the Art Institute of Chicago’s . This painting is called and was painted by Henri Mattisse in 1907.
If you’re in or near Chicago and love art, go see the exhibit if you haven’t already.
Not only are there some fabulous paintings & sculptures on display, but also some great drawings that seemed to be overlooked, judging by the attention paid to them by the visitors I shared the viewing galleries with.
For those who can’t make it to Chicago for the exhibit, you may be interested to catch a glimpse of the work on display in this video overview of .