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  • Stock Market Efficiency

    Stock Market Efficiency

    According to investment theory, the markets are efficient. By efficient it is meant that all the information related to an equity is known by all investors and the price paid in the market is the correct price. In addition, arbitrage does not exist as all investors that see the arbitrage will trade to take advantage [...]

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  • 50% Retracement in the Stock Market Indexes is Possible

    50% Retracement in the Stock Market Indexes is Possible

    There is synergy in all the indexes. As shown in the following charts, there seems to be agreement between the 50% retracement line and areas of support. We guess that is where we are headed. A month ago we saw problems but we were way too early to go short. The indexes broke the ascending [...]

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  • Dogs of the Dow

    Dogs of the Dow

    Who let the dogs out? Yes, we know that it sounds corny but we could not help ourselves. The Dogs of the Dow is a strategy that we came across while listening to some Optionetics audio material. The waythey described the system was to buy the five (5) worst performing members of the Dow Jones [...]

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  • Smoke and Mirrors

    Smoke and Mirrors

    The stock market proved one thing today: It needs more buying force to power through May 2010 resistance levels. Before we go all cumbaya about today’s gain, we wait patiently… Tomorrow will beĀ  another day. We will be watching. Fin Picture source

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  • Something is Off

    Something is Off

    A quick stock market note: The FAZ (triple short financial etf) is down and the overall market is down. There is some strange disconnect there. We warned about churning in some recent post. We guess that with the financial leadership missing, the market could correct. The market needed a breather anyway. Tighten your stops and [...]

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  • Interesting Stocks for 10/18/2010 – Brown Edition

    Interesting Stocks for 10/18/2010 – Brown Edition

    We are looking at the following stocks for Monday, October 18, 2010. UPS: United Parcel Service, Inc. (UPS) is a package delivery company. The Company delivers packages each business day for 1.8 million shipping customers to 6.1 million consignees in over 200 countries and territories. Its primary business is the time-definite delivery of packages and [...]

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  • Interesting Stocks for 10/8/2010 – A Hint of a Correction

    Interesting Stocks for 10/8/2010 – A Hint of a Correction

    We see some churning in some stocks that we are studying. For example, AmBev (ABV) seems to be stuck around 130 and cannot seem to penetrate it (disclosure: we own ABV in our paper and real money accounts +20% gain). Other stocks are stalling or correcting. We are still long the market and we will [...]

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  • Interesting Stocks for 10/6/2010 – Reloaded Edition

    Interesting Stocks for 10/6/2010 – Reloaded Edition

    We have been fully invested until two days ago when we got stopped out of some fake positions. We are long this market and we hope that October 2010 bucks the bearish trends of the past. We do not pay too much attention to market cycles since we let the market speak to us. We probably get some decent entry prices today as the ADP report showed suprise job losses in the private sector. We can play a commodity theme in the market as we got a strong buy signal on the CRX - commodity index.

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  • Window Dressing AKA Putting Lipstick on a Pig

    Window Dressing AKA Putting Lipstick on a Pig

    A brief discussion about window dressing.

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  • Interesting Stock for Monday, September 13, 2010.

    Interesting Stock for Monday, September 13, 2010.

    Recently we do not have a lot of spare time. School is keeping us busy. However, we have a delightful pick for tomorrow. Pay a maximum price of 35.04. We are gunning for the 45s or the high volume bar of 6/25/2010. THOR – Thoratec Corporation (Thoratec) is a manufacturer of mechanical circulatory support products [...]

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