Unlike many wonderful and intensely thought-provoking blogs, this one is not a source for news nor is it a soap-box. I will report what I see in the market, what I anticipate, and what I plan to do, and what lessons I’ve learned being part of the market increasingly since 1995, oh, and from reading hundreds of books on it and everything related to it, including psychology.
Money Supply Causing Concern With Future Inflation
Having an understanding of the Quantity Theory of Money (QTM) will provide one with an understanding why some strategist are concerned about future inflation. The factor in the QTM that is holding back inflation at the moment is the fact the "velocity" of money as declined substantially. So what is the Quantity Theory of Money?
Once again, a lot of back and forth action occurred on the indexes, but not real movement. After the most recent sell-off, the market has begun to move in an ever-smaller price range. For those on either side of the spectrum, there are plenty of arguments as to why a new bull market is being born, or the bear market will continue.
Handsome James: Today’s Market Commentary Friday Janurary 23, 2009
Well we pretty much got today what I was looking for. A weak opening but a failure to put in new lows and then a afternoon rally. I would have liked to see us get to the 8250 level but we failed the 60min 50sma again today. All the indexes, for this rally to continue need to recapture the 60min 50sma and hold them, 1 bar is not going to do it.
Standard & Poor's Launches S&P 500 VIX Futures Index Series
Standard & Poor's, the world's leading index provider, announced today the launch of the S&P 500 VIX Futures Index Series, a suite of investable indices that seek to model the outcome of holding a long position in VIX(R) futures contracts. The CBOE Volatility Index(R) (VIX) is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices.
The market took back a large chunk of what it lost yesterday. However, considering the losses that have stretched over almost two weeks, the market is still under water. On the positive side, both the S&P 500 and the Dow Jones Industrial Average have established a lower low-for the time being. Both are also currently sitting right above support levels.
Treasury Secretary-designate Tim Geithner knew a market crash was coming and kept silent. Perhaps it was to allow his connections in JP Morgan and Goldman Sachs to profit and gain power. This man had oversight of a market twice the size of the U.S. economy. Can he now be trusted with your retirement money?
No matter what we think is going to happen we have to be able to toss our egos aside and trade the tape. My signals last night changed on the gap down and once we broke the the 30min 50sma along with all the weakness in the financials I shorted the market and stayed short all day. Traders have to be able to adapt and take what the market is giving them.
Investment Advice Tends To Incorrectly Focus On The Recent Past
after the dismal equity market in 2008, a majority of investment strategist indicate investors should now focus their investment efforts on these dividend payers. Strategist find this to be a palatable recommendation since it "was" the dividend growth stocks that generated better returns in the last cycle.