Thursday, April 4, 2013

Transports are the early warning signal

The direction and strength of the transports index is an early indicator of where the S&P could be headed....and at the end of March 2013, the transports seemed going off the roof...like as in UAL going to the moon, and even BA, Boeing, with all its new planes on the tarmac because of the battery problem....this optimism in the face of adversity was...just a little overdone,,and the airlines turned down, and the S and P followed and now the big debate is whether and how much the market will fall....

"Genius Stays Small"

Heard this bit on a stock traders show today---that the major downfall of stocktraders in times of volatility, is that they trade in too much size in their trades....With high volatility you can make plenty of money by avoiding being wiped out in the first place, and then by ordering smaller size of stock, and holding rather than folding. So...it seems that small is ridiculed by some folks in the street, but not by those who are making money..Make a note of it.