This month I’d like to touch on some of the problems that passive investing and ETFs have and their effect on the market. As we will see, the problem with ETFs is that it has become a huge business and rather than be constructed for investment purposes, it is constructed so that it can sell regardless of the foundation which it was built upon. Tim du Toit sent me the … [Read more...]
Newsletter – July 2016
Yes, I got it wrong. For six months I was convinced that the market was going lower. And there was no way in hell that I was going to let the market take my money. So I executed the plan I had designed a few years ago. I reduced exposure via shorting overvalued hyped stocks with poor fundamentals and raised cash. I expected the return from the hyped shorts would more than … [Read more...]
Newsletter – June 2016
Over the past month, everyone and their mother had an opinion on Brexit. Bloomberg managed to put a lot of food for thought in the image below: I suggest you check out Mauldin’s post (click here) for an excellent analysis of what has changed and the realization by the EU leaders that in order to keep things together they will have to try a new approach. We will have to … [Read more...]
Newsletter – May 2016
“This time is different” Looking back over the last 30 years, I can proclaim that this time is different. Government and central bank intervention is at its highest. The market moves based on statements and actions by Yellen and the other CBs and not based on fundamentals. An irrational market is not something new but such manipulation is. Every time one of the “gods” … [Read more...]
Are Wix’s Goals Out Of Reach?
Summary It could take a long time for Wix to grow into its current high valuation. Wix needs to constantly spend on new features and services in order to keep up with the competition. Wix is an expensive stock with a product that is not superior to the competition. Based on my personal experience I have found Wordpress to be a better platform. In this article I … [Read more...]
Newsletter – April 2016
After 10 consecutive weeks of higher lows, the S&P final broke its previous week low. Bulls will say it’s taking a rest, but to me it looks like its fundamentally run out of juice. The blended earnings decline for Q1 is -7.6% according to FactSet, with the next three quarters estimated at -1%, +1.6% and +7.5%. A big bet currently on Q4 and we will most likely see that … [Read more...]
Jim Dalton’s Intensive Course
For the students of Market Profile, Jim Dalton is no stranger. He is the man who took the initial teachings of Pete Steidlmayer and not only made them his own but took them to a whole different level. Dalton actually sponsored Steidlmayer's first book. Those unfamiliar with Market Profile can read an article by Jim Dalton, the free handbook from the CME, or watch a short … [Read more...]
