“Gold is still significant. I ask myself, if it’s a relic of a long history, why is there a trillion dollars held in gold by the world’s central banks plus the IMF and all the other financial institutions? If it’s worthless and meaningless, why is everybody still holding it?”
— Alan Greenspan
A few weeks ago, we posted about gold. The Midas metal continues to be a store of value and is trading at a 10-month high.
Our recommended precious metals play for Options Hotline subscribers (triggered 02-04-19) is trading +95% in less than 3 weeks, with an always known and strictly limited risk.
If you want to subscribe, sign up here to see what our next move is.
Windsock, h/t iStock by Getty Images
“Technical analysis is a windsock, not a crystal ball.”
— Carl Swenlin
A windsock is a device used to determine the current wind direction and relative intensity. A crystal ball is a mere prop used to predict the future.
A windsock’s general purpose is to give the pilot a quick reference as to where the wind is coming from and the approximate wind speed. Before accelerating for takeoff, you glance at the windsock for information so you can give the necessary rudder inputs while the plane is rolling down the runway.
That’s how we apply technical analysis to trading.
Sheep loaded for transport, Australia, 2013, h/t Jo-Anne McArthur weanimals.org
“If freedom of speech is taken away, then dumb and silent we may be led, like sheep to the slaughter.”
— George Washington
Happy Presidents’ Day!
Daily we see immature, sniping attacks, filled with falsehood, sent from our land’s highest office, rain down upon journalists, comedians, and those whose opinions differ. Here’s to those strong souls who exercise their Constitutional rights by investigating, questioning, criticizing, and satirizing authority.
Speak up and support those who do so in defense of our liberty.
Enjoy Presidents’ Day, America’s most grammatically challenged holiday.
Trump Tariff Man by Dave Whamond, h/t politicalcartoons.com
“Tariffs on Chinese imports are paid by Americans, not by the Chinese or their government. The President’s tariffs are simply a #tax on American consumers.”
— Tweet by Steve Hanke, Professor of Economics at Johns Hopkins University, member of the Council of Economic Advisers under President Reagan
With US/China trade and tariff talk in the news, it’s important to understand who actually pays tariffs.
Hint, it’s not who Mr. Trump tweets it is.
Relax and enjoy your weekend!
Portrait of Gertrude Stein, 1905-06, by Pablo Picasso h/t Metropolitan Museum of Art, New York
“Money is always there but the pockets change.”
— Gertrude Stein
US markets are closed on Monday for Presidents’ Day. The zero-sum game of options trading picks back up on Tuesday.
Enjoy your long weekend!
“Success is not final, failure is not fatal: it is the courage to continue that counts.”
— Winston Churchill
Courage, along with knowledge, discipline, and hard work is a key characteristic of a successful trader.
Keeping calm and putting your emotions aside, when you win and when you lose, will help you survive, avoid surprise, and thrive throughout uncertain times.
Keith Richards, Photo by Ethan Russell, h/t TASCHEN Books
“Patience tends to pay.”
— a favorite saying of mine
Good morning and Happy Valentine’s Day!
To the New York Stock Exchange it’s just another trading day, unlike the upcoming Presidents’ Day holiday.
With more than 30 years of marriage and markets, I’ve learned the value of patience.
Love your friends and family, love people, animals, and our planet. Don’t fall in love with a particular position.
Possessing the patience to wait is a key to your trading success.
Have a lovely day!
Math is sexy, h/t hatsline.com
“Trading is not a sexy endeavor, it is math.”
— Steve Burns
Top traders are not depressed by losing trades, nor are they elated with winners. They navigate through uncertain markets with an even keel, keeping their emotions in check.
When you find the magic in the mundane, you’ve reached up to the next level in your trading.
The charting techniques and methods of technical analysis we use in trading apply math as an important tool to help depict the human behavior (buying and selling) that ultimately drives price direction. Math can show us a lot about the world.
A case can be made that math is sexy.
Here’s to good things adding up for you!
Woman with new ideas, photo credit: Shutterstock
“I can’t understand why people are frightened of new ideas. I’m frightened of the old ones.”
— John Cage
Always be thinking, but take care not to overthink things. And, though there are many good old ideas, keep an open mind and open eyes to innovation.
That approach applies to trading and to life.
“They dident [sic] start thinking of the old common fellow till just as they started out on the election tour. The money was all appropriated for the top in the hopes that it would trickle down to the needy. Mr. Hoover was an engineer. He knew that water trickled down. Put it uphill and let it go and it will reach the dryest little spot. But he dident know that money trickled up. Give it to the people at the bottom and the people at the top will have it before night anyhow. But it will at least have passed through the poor fellow’s hands.”
— Will Rogers, 1932
The election tours are starting out and the words of “Oklahoma’s favorite son” follow up on yesterday’s trickle-down theory theme. It seems the great American humorist had a good grasp of economics.
I hope your week gets off to a great start!