frankz

There's absolutely no reason why you should try to avoid the unavoidable.  Losses, draw-downs, are part of the game, they happen on a consistent basis.  You can do all the research, all the work humanly possible and you still cannot avoid losses and draw-downs. Stop wasting your time trying to do it.  That does not mean you ride everything down, take your losses, live to fight another day, but don't waste your valuable time trying to find the perfect system that tries to avoid the unavoidable. "Buy green, sell red, we never lost money," etc... is all a fantasyIn case [...]

The Dow Jones as I write this is down 232 points, people are freaking out, you can see that by the surge in inflows into money market funds.Internally the market has been dying slowly, the lower the price, the lower the market capitalization, the bigger the hit. h/t Michael BatnickHigh Price SP500 stocks have done better. h/t Ryan DetrickThe stocks within every SP500 sector has had a significant pullback from their 52 week high while the index itself is still a stone throw away from its high. h/t Chad Gassaway.Currently only 8% of the SP500 stocks are trading above their [...]

I have been in the finance industry for 18 years, I spent 13 years as a Series 7 broker, I have many friends on the street that I talk to regularly.  I also have a presence on Wall Street 2.0 which is Twitter/StockTwits. I believe that the people I follow on the social media front are smarter than my broker friends when it comes to the market (that does not mean they are better at investing/trading/making money). However, my broker friends are actually involved in the business, moving money around while some from the Wall Street 2.0 are not. As [...]

According to studies done by Investor Business Daily the majority of the “leading” stocks are usually in leading industries.  Their studies show that “37% of a stock’s price movement is directly tied to the performance of the industry group the stock is in. Another 12% is due to strength in its overall sector; Therefore, roughly half of a stock’s move is driven by the strength of it’s respective group”.One of the ways to take advantage of this is by focusing on the stocks that are in the top 20 best performing industries in the last quarter.  In green are the industries that [...]

The market has been under pressure lately, specifically many individual common stocks.  However, these few stocks have held up relatively well and more importantly the charts right here, right now, look very enticing.  If some pressure is relieved from the market these stocks should immediately jump out the gate.$AGN $AMGN $BLDR $DENN $DPS $HSIC $ISLE $JAH $MBLY $RH $PRGO.Getting Started Is Easyfzorrilla@zorcapital.com   @Zortrades

I recently wrote a post "Don't Be Fooled By These Long Term Charts" in which I explained that when you plot anything negative versus a long term chart of the SP500 it will look irrelevant.  The market spends the majority of the time going up, the market as in the SP500, Dow Jones, not individual common stocks.  “The Russell 3000 index measures the performance of the largest 3000 U.S. companies, 98% of the investable U.S. equity market.  40% of the stocks had a negative return over their lifetime, 20% of stocks lost nearly all of their value, 10% of stocks [...]

I'm not sure about the exact time-frame but in 2013-2014 it seemed like every blog post was about "negative divergence"/"bad market breadth".  Nowadays its just the opposite, it seems like every other financial blog post/tweet is about how market breadth is irrelevant or it doesn't count because a bulk of the stocks that are down are in the energy, material, and industrial sector.  Do we count as new highs only the biotech stocks that actually make money?I'm a believer that one should ignore negative divergence in a bull market 99% of the time.  However, it should be ignored not justified. [...]

  Going through some charts, I came across Ichan Enterprises $IEP; a master limited partnership (run primarily by Carl Ichan), is a diversified holding company engaged in ten primary business segments: Investment, Automotive, Energy, Metals, Railcar, Gaming, Mining, Food Packaging, Real Estate, and Home Fashion.   Ichan Enterprises is down nearly 50% since Time Magazine (December 2013) put him on the cover of "The Original Wolf Of Wall Street Returns." You can only imagine how many people jumped on that runaway train due to looking at what IEP had just done, thinking that type of performance could be easily replicated [...]

One of the best way to take advantage of the earnings season is to keep track of the stocks that reacted well immediately after their earnings report.  The stocks immediate reaction should be one that can't be construe any other way than the positive.  Setting a minimum gap up requirement of say 4% or 6% will narrow down your universe dramatically and show you only the stocks that might fall under P.E.A.D.“Post Earnings Announcement Drift (PEAD) is the tendency for a stock’s cumulative abnormal returns to drift in the direction of an earnings surprise for several weeks (even several months) [...]

"The time to buy is when blood is running in the streets".---Baron RothschildIt feels much better to buy assets while they're rising, but it's usually smarter to buy after they've been fallen for a while."-- Howard MarksAccording to the Ivy Portfolio the median country returns from 1903 to 2007 is 10.65% (all years), and 14.9% after three down years in a row.Recent data by Dimson, Marsh, Staunton database showed a median country returns of 8.74% (all years) and 15.94% after 3 down years in a row, both suggest that you will double the median return of all years if you [...]