Jesse Livermore was one of the greatest traders who ever lived. You can read more about him here. He has so many great quotes, but here are a few of my favorites: 1) The stock market is never obvious. It is designed to fool most of the people, most of the time. 2) Play the market only when all factors are in your favor. No person can play the market all the time and win. There [...]

Last Friday afternoon, Reuters ran a story about Jeffrey Gundlach, the chief executive of DoubleLine Capital. He is advising people to "sell everything" because "nothing here looks good." While I have tremendous respect for Mr. Gundlach, I completely disagree with this statement for the following reasons: 1) For a guy who is nicknamed the "Bond King," he seems to have many strong opinions about the equity markets. He's a genius in the fixed income markets, [...]

At the beginning of the month, I posted my 2016 Second Half Outlook. I know it is VERY early, but so far the blueprint is working out well: 1) The Brexit decline at the end of June may have been the last shakeout before the market finally breaks out of its two-years range. Many times before big price moves in stocks/markets, quick pullbacks occur to shakeout the weak hands. 2) It wouldn’t surprise me if we make new [...]

I keep reading that we are in the 7th year of a Bull Market. I don't buy it! Why? Because we have been in a Bear Market for the past year. Although the S&P 500 didn't correct by the popular "Bear Market definition" of -20%, the majority of stocks got decimated beneath the surface. Energy stocks corrected -50%, Biotech -40%, Financials -25%, and Small and Mid Cap stocks -25% over the past year. In addition, [...]

In the past two years, the S&P 500 has essentially gone nowhere, frustrating the majority of investors. We have seen three "V bottoms" (shown in the chart below) where the market shoots down about -10% (resulting in losses), only to grind right back up as if nothing happened. Also, beneath the surface, many sectors corrected significantly during the past two years: Energy -50%, Biotech -40%, and Small Caps -25%. With regards to traders, many are [...]

The market has bounced nicely the past two days after the Brexit selloff. Now, here's the biggest question on traders' minds: Is this just a normal oversold bounce before the market heads lower? Or was the Brexit selloff just an overreaction and a non-event before we go higher? Of course, no one knows the answer to this question, but there is one thing which continues to favor the Bulls: During every selloff over the past [...]