There are a million ways to make money in the market, at the end of the day there is no right or wrong way. Today, Carl Ichan showed the world how he made over $2.1 billion dollars on a $321 million dollar investment. Carl bought $NFLX in late 2012 when the stock was in a downtrend, near its 52 week low, he sold it today as it traded at all time highs. Buying stocks near lows and in downtrends goes against what every trading book and trading guru advises you to do. Carl made over 1000% doing the exact opposite.
Next time you read or hear one of these preachers preaching to only buy near highs, not to look for stocks near lows, only losers average down losers, don't sell a stock going up, etc....Tune them out and remember Uncle Carl and his $NFLX trade.
What you have to figure out is what works for you, that might be buying highs, buying lows, breakouts, breakdowns, etc...
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Thursday, June 18, 2015
Here are some of the headlines, surveys, stats, etc..that have been going around the stocktwitter sphere over the last couple of days;
1. Number of fund managers that have taken out protection against a market slump hit a record high.
3. We also have a record amount of hedging along with the largest percentage of shares short in the SPY at 8.5%. Large speculators held about 12,000 more short positions in S&P 500 futures than long ones through June 9, according to data compiled by Bloomberg and the U.S. Commodity Futures Trading Commission. That’s the highest amount of bearish bets relative to bullish ones since the five days ending Oct. 24.
Bottom line; Either a whole bunch of market participants will be right about a possible correction or a bunch of market participants will eventually have to chase price if the market continues to climb the wall of worry.
Sources; Bloomberg, NAAIM, Ryan Detrick, CS
Thursday, June 11, 2015
Investors intelligence numbers come out every week, very simply they ask a few people if they are bullish, bearish, or neutral on the market for the next 6 months. A big deal is made out of this every week by a few people. I'm not so sure how important or even useful this data may be due to; the amount of people surveyed and the fact that it's an opinion. The opinion might be one that is weakly held, or one that is not actionable. On the second chart you see what investors are actually doing with their money, which I believe is more important than ones opinion.
What you see is that only 20% of those surveyed are bullish on the market over the next 6 months, while on the second chart you see that equities as a percent of total assets is showing a high reading/participation by retail investors. I think the Cavaliers have a shot of winning but my money is on the Warriors.
Tuesday, June 9, 2015
Every time people talk about casinos for the most part they mention WYNN and Las Vegas Sands. Those 2 stocks have fallen on hard times partly due to their overseas business (MACAU) which was a tremendous windfall when they first enter that market. Boyd Gaming (BYD) and Penn National (PENN) 2 companies that decided to stay at home saw their stock suffered at the beginning but now are benefiting from the lack of overseas exposure.
Technically speaking BYD and PENN are very close to breaking out and as the street starts to realize their recent outperformance which should see sort of an ambulance chase to get on board.