ManyPeaks.com

Because so many have asked “how do you avoid losses in the stock market” — I tried my hand recording a video in an attempt to explain.  This is certainly new territory for me, both marketing and technology-wise.
Note: charts shown are Daily, each bar representing one full 9:30am-4pm trading session.  The buys and sells made […]

The whole capital injection / liquidity provision / preferred equity investment stuff that our Treasury & Federal Reserve keep coming up with are all simply awful ideas in our opinion.  I could go on for a long time about why, but many have gone there already.  Intelligent, widely held thoughts about moral hazard, socializing risk […]

I’m not simply referring to the fact it’s been going down.
Global equity markets have obviously seen a rout for weeks now. But even if one has suspected such action — as we have — it is still a difficult trade to capture.
To us, the best course of action is either hedging long positions with […]

There are occasions — sometimes years — when stock markets are so unrelentingly strong that a good active manager who was previously known to be “prudent” becomes viewed as a laggard. This most often happens near major tops in the stock market. Teresa Lo of PowerSwings.com discussed just such situations in a very […]

We have been honoring some of my mentor RevShark’s words this week. Saved from a long-ago post on RealMoney.com, I break out this quote whenever the market gets dicey.
“Keep the Damage to a Minimum.
If you can avoid taking a large hit now, you will be much better positioned when things get better.”
Words to invest […]

There’s lots of wrangling about who in government is going to “fix the problem” of high energy prices. It doesn’t need fixing.
Now I’m no proponent of tobacco consumption, but MSNBC’s report that — far from expectation at the time — production of the golden leaf has done nothing but increase since the federal price […]

It sometimes pays well, but is a tough line of work.
One of my core tenets is to never, absoulutely never, let one individual trade or transaction impair our capital to a degree we can’t recover from quickly. Opportunity comes around far too often to cling to losing positions very long.
While preferable with a beautiful […]

With 2008’s first quarter ending soon, I certainly would rather have made a ton of money for clients rather than having basically broken even.
When in doubt, our philosophy has been to reduce the risk we’re willing to take, both on any one trade and the overall exposure levels across the portfolio, rather than try to […]

Thanks to long-time financial blogger Charles Kirk for rehashing these quotes from a legendary trader..  I relate most to the final point.  That’s precisely how Teewinot has kept losses to a minimum during 2008’s destructive market action.  Client accounts are basically breakeven for the year.

“If a betting game among a certain number of participants is […]

Wednesday’s market news was dominated by a hot reading in the United States government’s monthly CPI report, and speculation about its effect on the FOMC’s interest rate reduction campaign.
As most readers know, I reside firmly in the “CPI is baloney” camp, although it is tough sharing the philosophy of a grown man sporting a mullet […]