Ichan’s “Party Bus”

It’s been over two years since Carl Ichan gave his Blackrock “Party Bus” speech right in front of the Blackrock CEO himself:  Larry Fink.

Our short video of BLK shows just one dramatized (but then again, maybe closer to the truth) outcome if we have indeed seen the highs.

For a more serious look at the technical picture, go to this link for analysis.

Pencil Nubs

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Sharpening one’s pencil to the nub, attempting to calculate corporate earnings down to the gnat’s gonads, is a futile task.

The consensus miss on the recent earnings release from Chicago Bridge and Iron (CBI) is just one case in point.

A much better approach, one that’s been proved since the early 1900’s is the method used at this link.

Clicking on the S&P Sector Archive shows two recent charts of the S&P 500.  Price action of the market itself identifies the next likely direction.

A century ago, the father of technical analysis (Wyckoff) stated it himself:

  ‘The most important thing in Wall Street is to know what will happen next.’

So now the S&P has reversed.  That fact presents the next question … what will happen next?

The answers do not lay in earnings reports, interest rate pronouncements or unemployment numbers.

The answer to market direction is in the market itself.

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For technical analysis on individual stocks, markets or indices, please visit our parent site at www.ten-trading.com

Upwards, Sideways & Down

Fotosearch_k8916628-1That’s the direction of the Dow Jones 30, the S&P 500 and the Russell 2000.

Intermediate and advanced trading professionals understand what this means.

When a market has experienced a long, sustained advance that may cover months and years … near the end of that advance and just prior to the ultimate top, the market thins out.

That’s the process whereby fewer and fewer stocks are participating in the advance.  Essentially, the bear market has already started as more and more stocks fall away from the uptrend.

In fact, ZeroHedge just reported the S&P 500 in its narrowest (11-day) closing range in history:  An unprecedented event.

Now that we appear to be at the upward extreme, what happens next may be unprecedented as well.

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For technical analysis on individual stocks, markets or indices, please visit our parent site at www.ten-trading.com

 

If you want to get rich …

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If you want to get rich, you have to go broke first.  Maybe you’ll have to go broke several times.

It seems this step is an invariable requirement in the acquisition of wealth.  The market masters of the early 1900’s went broke.  Speculators like Livermore, Keene and Wyckoff.

Even Robert Prechter of Elliott Wave International has stated as much in his interviews; He puts it a little differently:

‘Be sure to lose your first fortune(s) early … so that you have time to recover.’

Note his inference on ‘recovery’.  Winners recover.  Losers recount.

I have an acquaintance that wants to begin trading in earnest; searching to gain significant wealth.  He’s already had a successful career having been a weapons officer in the Air Force and later, an aerospace engineer.

Now, he asks me market questions, the answers to which require that he invest countless hours (and possibly years) of study and dedication to learning the craft.

After a recent barrage of such questions and in a sense of exasperation, I simply said:

“If you want to learn about the markets, the best way to do that is to start losing money.”

How much better it would have been for my own firm to have understood that fact.  We would have set up at least three separate trading accounts … the first two of which were expected to go to zero.

If by that time (the third account), a concise plan had not been developed, well then, one can at least decide to exit the profession altogether having lost only 2/3rds of one’s wealth instead of it all.

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For technical analysis on individual stocks, markets or indices, please visit our parent site at www.ten-trading.com