11th September 2008
Prices in the S&P 500 and in other major Indexes rose quickly on the day after the government announced that it would take over Freddie Mac and Fannie Mae. Both agencies had been abused for years by top management which, it is now alleged, manipulated th...
11th September 2008
Traders always look for Good News, or anything that passes for Good News, to justify buying into the market. Certainly, early in September 2009 there had been nothing but a flood of bad news – the housing market continued to deteriorate; employment numb...
09th September 2008
In November 2006, the price of Wheat began a sustained rise which finally came to a climax in March 2008 after a parabolic upsweep. Since then, prices declined to a low in May 2008 and have bounced up and down, now to a low which is equivalent to the pri...
02nd September 2008
It is said that a picture is worth a thousand words. That may be understating the case. Political cartoonists continually have a field day with ever-changing subjects – persons seeking political office, the state of the economy, the debacle in the hou...
02nd September 2008
We’ve had a bit of a respite in the high price of gasoline lately – down to “only” about $3.80 per gallon in my neighborhood as compared to about $4.25 a few weeks ago. Those kinds of numbers are far out of kilter with my own life experience. Wh...
20th August 2008
Observing the movement of stock prices in Japanese Candlestick format and in real-time depiction is somewhat akin to watching the printout of an electrocardiogram in motion. One is seeing at first hand the story of an unfolding investor psychology. The ...
20th August 2008
“A picture is worth a thousand words.” How many times have we heard that? Since early times, humans have made pictures of things and events around them, both because visual representations give pleasure and because they create a record. The inventi...
18th August 2008
The story of the decline in Merrill Lynch shares since early 2007 bears an uncanny resemblance to that of Bear Stearns. From a high of $98.68 on January 18, 2007, Merrill shares fell to a low of $22.00 on July 29, 2008. Could such a drastic decline have...
17th August 2008
It was centuries ago that a rice trader in Japan devised a method of price recordation which told him what he wanted to know about the psychology of his fellow traders. It was almost like a living, breathing second-by-second tracking of their mood of the...
15th August 2008
Much is written in the standard Japanese Candlestick textbooks about the standard candle patterns and their degree of predictive reliability. Hardly anything is said about variations of those patterns. The reader is left with a dearth of information abo...
15th August 2008
We often hear of the “Austrian School” of economics, or of the “London School,” or of the “Chicago School.” I would use the word “school” in another sense – identical to a “gaggle,” a “flock,” a “pack,” or a “herd.” Ind...
24th July 2008
Hundreds of years ago, a rice trader in Japan developed a system of recording the ups and downs of daily prices as rice was bought and sold in the wholesale market – a system which recorded in picture form the underlying psychological inputs which impel...
22nd July 2008
Fannie Mae is a “Government-Sponsored Enterprise,” but even so, it is a private corporation whose shares are widely owned, principally by financial institutions. In recent months, the value of those shares has plummeted from a high of $70.57 in A...
21st July 2008
Humans love certainty. The science of Mathematics is a study in absolutes. Investors in the stock market continuously search for the Holy Grail of mathematical certainty - the Sure Thing trade. Unfortunately, the Sure Thing does not exist in the stock ...
16th July 2008
Mechanical technical analytical systems are a product of the human desire for certainty. They are attempts to reduce to physical certainty processes which are emotional, not physical. They try to jam the facts of one world, the world of emotion, which w...
