Tag: reading

Sunder’s List

And if you lose a client because you’re not a gunslinger or because you’re not being aggressive enough in a market melt-up, then guess what – that client is eventually going to find the guy who will blow him up properly, just the way he wants it. (WSJ)

Whenever the market dives, the bears grow wings:

Europe’s debt crisis is a “more serious” situation than the housing bubble – GM CEO: (Bloomberg)

At least a 10%-15% decline in the S&P 500 from current levels (WSJ)

Looks like the S&P500 fell through the technical support discussed here.

One a side note:

Have PhD but no job? Go East (young) man! (Vivek Wadhwa)

Follow me on twitter: @SunderStockViz

Technical Analysis of the Financial Markets: Ch 4

Continuation of the review of the 4th chapter of John J. Murphy’s Technical Analysis of the Financial Markets (prev.)

Trendlines

imageThe simplest trendlines are the up trendline: a straight line drawn upward along successive reaction lows. A tentative trendline is initially drawn under the first two consecutively higher lows (points 1 & 3) and then confirmed at the 3rd test (ponit 5). A down trendline is similarly constructed over consecutively lower rally highs.

To draw a trendline:

  • The peak at 2 should be penetrated
  • 50% retracement of wave 2-3
  • Prices approach the top of 2
  • Confirmed once prices bounce off the line the third time (point 5)

As long as the trendlines are not violated, it can be used as buying and selling areas. A violation, however, is one of the best early warning of a change in trend. The longer the trend and the number of times it has been tested, the more its importance. Once a reversal occurs, what was once an up trendline, now acts as a resistance barrier for subsequent rallies. And what was once a down trendline, acts as support.

Up Next: The Fan Principle

Sunder’s List

Off to the races!

You can always be right if you say Yes and No at the same time: Which Morgan Stanley Should We Listen To?

For the technical analysis out there: the importance of Volume What the market’s light volume tells us Mark Hulbert

Hayward 5000 anyone? Anheuser-Busch Stays Classy With Bud Light Platinum

This time its different. I promise! Buyers and developers face some harsh home truths

Reminds me of when “CDO Managers” were being paid this kind of dough: The $200,000-a-Year Mine Worker

More technical analysis goodness: S&P Forms Potentially Super-Bullish Triangle Pattern

Are we set for a ‘Santa Claus’ rally? Related: Does India love Christmas?

Follow me on twitter @SunderStockViz

Sunder’s List

Breakfast reading

Faster than you can say contagion! Eurozone bonds hit by mass sell-off

The only 20th century companies in his portfolio are IBM, Kraft, and Walmart: Buffett: Aged Companies ‘r’ Us

Long term technical analysis of Walmart: Wal-Mart has Built a Massive Decade-long Base

US postal service  going bankrupt?  USPS Weighs Hiring Restructuring Advisers

Lets raid the piggy bank: EU’s Rehn Backs German Eurobond Proposal

BlackRock chairman/CEO says liquidity is vanishing in Europe: CNBC

Now even your mom knows what the Euro crisis is about: Euro Crisis Breaks Through the ‘Mum Barrier’

For the masochistic: The west is in danger of frittering away its freedom

Follow me on twitter @SunderStockViz

Sunder’s List

Must reads this morning

Investors are losing confidence in the euro and it has all the earmarks of turning into a run – Warren Buffett

Our generation is autonomous. It is impatient. We refuse to pay our dues: Generation Make

Anthony Bolton, one of Britain’s best known fund managers, has been forced to issue a humiliating apology after his fund lost 29% investing in China: Telegraph

Thus, when confronted with someone who has a fervent belief based not on evidence or reason or data or logic, do not waste your time convincing them the earth is not flat; their cognitive facilities simply will not allow them to recognize the world is round. The Cognitive Dissidents

Follow me on twitter @SunderStockViz