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Nothing special. It's Pocket Pivot Buy Point in my execution and with my instruments. Setup showed itself with good buy volume while the general market was declining, nothing more.
Can you help answer these questions from other members on NexusFi?
Finished Consumer Discretionaries and started Industrial indices.
Also finished "The Battle for Investment Survival".
The interesting thing is, that I to start to see the situation a bit from the view of how a less technical oriented novice "long-term stock-jobber" might think as he starts out, whereas I started out pure technical and very short term oriented.
The mere word "Investment" in the title, might frighten off a trader, but the book isn't at all like the "Intelligent Investor" type of format. Loeb is against diversification, advises staying in cash most of the time and even points out the necessity of taking significant risk in an intelligent way, to get things going.
It also comes through that he had the "better 2 marshmallows later than 1 marshmallow now" attitude as a way he approached doing business.
He says there are 3 ways of making money:
-Sell your time
-Lend your money
-Risk your money
"Thou hast been faithful over a few things, I will make thee ruler over many things"
Started reading Bernard Baruch's autobiography. I've already read his biography a while ago, but I think biographies and autobiographies require a bit of a different approach. In a biography I expect to see everything about the particular person, unbiased, and also including some of the not so good sides and traits or actions of that person.
In an autobiography I expect some bias, because understandably people want to show themselves in good light, but I think there's great value in reading the exact words, right out of the mind of that person.
I think Baruch is a pretty good rolemodel when looking for someone who understands markets. He was also an adviser during WW1 and WW2, so he has for sure a very good understanding of human nature.
A sentence his father used to say: "It is not so important where you come from, as where you are going!"
Also looked a bit into DHI.
The cup isn't a well formed one and the sourrounding facts speak more against it, but the stock itself seems to behave pretty solid.
DHI
"Thou hast been faithful over a few things, I will make thee ruler over many things"
Finished all sub-group indices with exception of some minor ambiguities that are still to resolve.
The Baruch autobiography turns out to read exceptionally well, almost like a novel.
He was born in the south right after the Civil-War and lived his young years through the post-war period. I already knew the standpoint/view of the Union side and it's pretty interesting to also have gotten a glimpse into the Confederate side and some of their struggles in that time. A problem of war is definitely that oftentimes people have to fight for values that aren't even their own.
He also met Morgan in his beginning years in Wall Street and James R. Keene as well already appeared in the book. In one way or the other those big names all crossed their way at some point. Nice is that Baruch basically belonged to the next generation after most people I've done research on until now.
"Thou hast been faithful over a few things, I will make thee ruler over many things"
Finished the remaining sector relative strength charts. Now my "Barometer" should hopefully have the right mixture of giving me daily a good impression on what the market is doing, without overloading me with too much things that aren't really necessary to know.
HPQ still looking nice. I'm really curious if this plays out the way I think.
Baruch was definitely a different type of speculator than Livermore. His operations were based on fundamental economic data, political decisions and the like. He do mentions a trade in a copper stock, he took based on his outlook for supply and demand on copper, but not judging on the price-behavior of the stock, but his interpretation of the entire situation of that stock, including for example what other big operators might do.
For now I can see no hint at all that he took the tape into consideration as well.
"Thou hast been faithful over a few things, I will make thee ruler over many things"
Did some "Fundamental Analysis for Dummies" studying. A thing one might not think of that important, which actually tells a lot about a company is the Cash Flow. It's even more telling than the earnings.
One way to calculate the intrinsic value of a stock is the "Discounted Cash Flow Analysis". But like always, that's way more difficult to do than I expected. Also there's a part in it, which requires personal judgement, as opposed to just knowing which numbers to take out of the financial statements and put them into formulas.
Baruch overlapped partly with the Morgan biography in telling about a fight for the control of a railroad between James Hill and E.H. Harriman which caused a short-squeeze which then led to the panic of 1901 where
Baruch actually was short. He do had some information that the average guy wouldn't have had, but I understand more and more that this doesn't really make a difference. He nevertheless had to interpret things right and put his money on the line.
He also did a nice description about James R. Keene, of whom unfortunately information is not easy to gather, but who was I think one of the very shrewd operators but not made that much stir around his persona as others did.
"Thou hast been faithful over a few things, I will make thee ruler over many things"
Fundamental Analysis about what to look at besides things related to numbers. For example that lawsuits against companies are totally common, that auditors are the watchdog for the investors, but that there's also a conflict of interest.
Being aware of in what manner the management of the company answers to certain questions in the conference call. A thing I never really thought about is, that the CEO is not to be seen like it is "his" company, but he is "just" the manager of the company that belongs to the shareholders.
Then started "Tape Reading & Market Tactics" by Humphrey B. Neill. This is the 2nd of the two books it is said Darvas found to be the most important in his studies.
The author has also two other books on the topic of Contrarian Thinking, which I think gives him credibility.
He speaks in terms of campaigns the insiders and large operators conduct and in which way to look at it to not be deceived by them. He puts huge emphasis on volume.
"Thou hast been faithful over a few things, I will make thee ruler over many things"
Fundamental Analysis about basic economics and about the sectors and groups.
HPQ keeps me waiting day after day. One thing I've noticed is, that in the upmove of the handle, volume declined noticeably. I'm not sure how to interpret this, but I think decreasing volume with rising prices is not the best sign.
ISIG came back to life yesterday. So maybe "they are going to try to fool holiday gamblers"
That's how UAVS set up a year ago around the same time
UAVS
ISIG currently:
The pullback appears to be almost too far to be considered healthy, but since I tend to think that most of the moves in this stock are artificially produced, that possibly isn't that important.
Kinda after the motto: "Hey Joe, it couldn't hold the dip by itself!" - "No problem John! I'll spike it back up in premarket!"
"Thou hast been faithful over a few things, I will make thee ruler over many things"
This one looks great also in my eyes. Added to watchlist. It's screaming like: "I want to go higher".
Friday close was a great opportunity to buy, but still, on Monday it can show an entry point.