MY TAKE ON INVESTING

Like everyone else, there is only one reason why I study, analyse and participate in the financial markets - and that is to make money. But the difference with me and most other people is that I am willing to use anything (legally) possible to do it. If counting the number of cockroaches that I see everyday gives me an edge in the market, I'll do it. If it works, I'll use it; be it keeping tabs on the economy, looking at charts and indicators (technical analysis), looking at value or growth potential (fundamental analysis), profits & earnings + other related market activity (quantitive analysis), through insider activity + consumer surveys (sentiment analysis) and yes even astrology.

I've spent over five years monitoring, studying, observing and trading the financial markets. My quest was to find out what makes the financial markets move, to find something substantial, something that will provide consistent monetary gains. I don't want to just accept what other authors say/write as gospel truth, I want to know why. In 2005, I took a masters degree in finance to see if what they teach in the university adds any value towards investing success - the answer is 'not really'. Investment knowledge builds up with time - what might seem unimportant to you now may become what you need to get you to the next 'level'. Such is my experience with fundamental, quantitative, economic and sentiment analysis.

What you see in this blog represents quite a number of item(s) and technique(s) that have met - like what W.D. Gann says - my '(utmost) satisfaction' and I hope that they can be of use to the investment pilgrim who's also on a quest for understanding and success.
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Sunday, June 12, 2005

End of Day Maket Thoughts 10 June 05

On the US side, it seems like the Government and the Fed are going different dir3ctions. The Bush administration gave a report expecting softer economy in the next 2 quarters but Uncle Greenspan is saying that the economy is on firm footing... inflation's under control and a whole of other stuff. So the market took that to mean that a slowdown of interest rate hikes may take awhile more... So, 2 pieces of positive news from the Fed and a negative one from the US Govt caused the market to go nowhere.

I had 'bot' 20 QQQ 38.4 (i think) July Puts on my investopedia simulator a/c on the day of Uncle Greenspan's comment based on techinical indications... the MACD was crossing over (bearish) on the daily chart while the slow stochastics was crossing over (bearish) on the weekly chart in overbought territory. The MACD on the weekly chart however, had just crossed over (bullish). So there's a likelihood that the market MAY be consolidating (or correcting slightly) in the near term and possibly heading higher in the mid term. I closed out the option position after about 2 days.... The sentiment indicators were getting more bullish, but I'm still waiting for an extreme indication before 'putting' again. So, better to take small profits in the meantime, and go with the market.

Date::Trade Type::Symbol::Quantity::Price::Fee::Total Cash Value
6/10/05 11:08 AM::Sell_To_Close Put::QQQ SL::20::$0.85::$54.99::$1,645.01
6/7/20 11:29 AM::Buy_To_Open Put::QQQ SL::20::$0.55::$54.99::$1,154.99

Oh well, since I'm babbling about interest rates, the market is now expecting the rates to slow once it hits 3.5%. The recent employment numbers slowed to a low of 78,000 suggesting that the economy is indeed slowing. Just waiting for the lagging indicators to slow and head down... even thou it looks like a good time for that to happen, it'll be better to wait for a confirmation as such trends are usually intermediate to (short) long terms affairs - giving a larger window period to buy.

posted by SmokingFlax @ 2:19 AM   0 comments

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