Announcing! My Latest Book! Viewpoints of a Trader!
I’m proud to announce the release of my latest book, Viewpoints of a Trader. This is the only book on the art and wisdom of trading. I have been trading profitably for over 50 years so I think I have earned the right to say I have some wisdom about markets. I’ve traded just about everything under the sun including some things that don’t exist any more like pork bellies, eggs and broilers. But I have also been at the cutting edge of things that were brand new like derivatives and crypto. I have condensed what I have learned into one volume. Each chapter is as short as I could make it as I wanted the wisdom to be distilled not overwhelming. The topics cover all the things left out of other books like: How to play The Big One What is Trading Power and how do you manage it Runs of winners and
Fed Chairman Jay Powell shocked the market yesterday when he implied that the final rate that the Fed hikes to will be higher than the market was thinking. At the same time, he said that they might slow down the rate of increases.This shocked the market because they believed that the Fed would be finished tightening by March of next year at about 5%. Now they are thinking much higher, perhaps even to 6%.The market actually believes that inflation will start to come down pretty quickly by March 2023 but take a year or so to decline to the Fed’s target of 2%.But Jay is right and the market is wrong, from one perspective.There are several problems: Inflation may come down next year but very little The recession will cause governments to boost transfer payment keeping inflation high The Fed Fu
I was hired to coach one of the greatest traders of all time. I sat next to him every day for 18 months. He was uncanny. He would buy a dip in the market and the market would go higher. He would sell a rally in the market and the market would go lower. He would relentlessly make money from short term swings in the market. At the time, I was mainly a long term position trader. My strength was identifying big trends and riding them for big money. But not as much as he was making! Part of the reason he hired me was to help him on the big trends. But he didn’t want to ride the big trend. He wanted to ride the waves within the big trend. In other words, he wanted to swing trade in the direction of the big trend and make even more money! How? He would buy the dip in the big bull market and then
I was hired to coach one of the greatest traders of all time. I sat next to him every day for 18 months. He was uncanny. He would buy a dip in the market and the market would go higher. He would sell a rally in the market and the market would go lower. He would relentlessly make money from short term swings in the market. At the time, I was mainly a long term position trader. My strength was identifying big trends and riding them for big money. But not as much as he was making! Part of the reason he hired me was to help him on the big trends. But he didn’t want to ride the big trend. He wanted to ride the waves within the big trend. In other words, he wanted to swing trade in the direction of the big trend and make even more money! How? He would buy the dip in the big bull market and then
The Establishment struck back The demise of the Liz/Kwasi (LK) was the result of: The Conservative Party establishment counter attacking the free market revolutionaries The Bank of England counter attacking the free market revolutionaries LK’s incompetence LK were members of free market groups who feel that: The UK is stagnating under over repressive regulations and taxes The UK is stagnating under the over repression of the European Community Too much immigration is pushing down wages on the low end of the wage scale There is too little opportunity for the population to grow wealthy or perhaps even get better jobs The population can better allocate capital than the government The population can increase their happiness better than the government can increase their happiness. So they came
Yes! For now… The wild swing yesterday should mark the low for the near term. Here’s why: It might have been a capitulation bottom. Capitulation bottoms are typified by a sharp turnaround on heavy volume. And you have to have both of those elements. The CPI came out bearish but the market turned bullish and ended higher by the end of the session. I wish the volume was bigger. It was big but not bigger than the volume about a month ago. For now, I will say it is big enough but there is some doubt there. It smelled like capitulation to me. The market dropped in a panicky way. That happens when the bulls give up and sell quickly. It created a key reversal. A key reversal is when the price makes a lower low and closes higher plus the whole range of the day is outside the range of the previous
Look for copper stocks to move sharply lower in the coming months!So many people, mainly politicians, still think the economy is doing well. Even Fed Head Jumping Jay Powell thinks it is. If that is true then copper should be doing really well.But it’s not.It’s in a bear market.And it is going to go a lot lower.Why?I have been detailing for months the destruction of the house building industry. I told you it would happen months ago and it is happening right now. Home building is the biggest user of copper and home construction will be in the tank for months.The auto industry is the second largest user of copper and it will hit the skids in a minute.As the same time, third world countries are being squeezed by higher interest rates and a strong dollar so they will have to pump out much more