Two Reasons The Market Will Make New Highs Later This Year
REASON #1 As many of you know, I use the price action of leading stocks to help me determine the overall health of the market. Everything else is just noise. When the market corrected in June, I thought we could be heading into a deeper correction...but something interesting happened. As I did my nightly screening work in June, I noticed that many leading stocks held up EXTREMELY well. And it wasn't just 3 or 4 stocks, [...]
Mid-Year Resolutions
Every January 1, my Twitter and Facebook streams are filled with the same quotes: “Good riddance 20xx…This is going to be my year…So glad that year is behind me…I’m gonna kick ass this year…etc…etc.” You know what I think? It’s all bullshit. So many people think some magical turn of the calendar is going to kick start their lives, but usually, nothing ever changes. In fact, studies show that 95% of New Year’s Resolutions are [...]
Three Summer Scenarios
On 5/28/13, I wrote a blog post about how I lightened up my equity exposure. The S&P 500 was at 1660 and proceeded to drop over 60 points. When the S&P 500 found support on its 50-day moving average (around 1600 on 6/6/13), I began to increase my exposure as discussed here. Since then, the market attempted a run at new highs, but it failed last week and I got stopped out of my remaining [...]
10 Great Jesse Livermore Quotes
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 [...]
A Few Strong Technical Signs
On Tuesday night (5/28/13), I wrote a blog post about how I lightened up my stock positions and reduced my market exposure. At the time, the S&P 500 was at 1660 and proceeded to drop over 60 points into last Thursday (6/6/13). I began to increase my exposure around these levels for the following reasons: 1) The 10-week moving average has been an area of strong support for the market all year so far. This [...]
Active Vs. Passive Management
My friend Josh Brown wrote a great blog post about active portfolio management. It sparked so many thoughts, so I'll try to sum them up in the following points: 1) I talk to many potential investors who ask me "why should I have an active strategy when the market is doing fine and keeps going up?" OF COURSE when the market goes straight up for 4 years, a buy and hold (passive) strategy works well. You'll [...]