Your Almost Daily Bit of Wall Street Wit & Wisdom

h/t Shutterstock

“We typically trade our beliefs about the market, and once we’ve made up our minds about those beliefs, we’re not likely to change them.  And when we play the markets, we assume that we are considering all of the available information.  Instead, our beliefs, through selective perception, may have eliminated the most useful information.”
— Van K. Tharp

You are the most important factor in your success.  Understand and overcome your biases.  Use a trading system that’s right for you.

I believe that mind, method, and money management are the cornerstones of your complete game plan for trading success.

FYI: Our latest option recommendation, on Barrick Gold Corporation (GOLD),  is trading +30% in one day on a 2% move in the underlying shares, with an always known and strictly limited risk!

That’s the Superleverage power of my method on display.

If that’s the type of options action you’re looking for, click here to subscribe to Options Hotline today.

Let me know if you have any questions.  My email never sleeps.

Good luck in your trading!

Best regards,

Steve

Your Almost Daily Bit of Wall Street Wit & Wisdom

Paul Sarnoff

Paul Sarnoff in the early-1980s

“The way things are going, you’d better have at least ten percent of your assets in gold.”
— Paul Sarnoff

The Midas metal is perking up.   It could be that time, again.

Subscribe to see how Options Hotline readers are positioning to vie for fun and profit.

Happy Father’s Day!  I’m remembering my dad today.  Throughout my life, he reminded me, “The greatest gifts a father can give his child are roots and wings.”

Best regards,

Steve

Your Daily Bit of Wall Street Wit & Wisdom

Gold bars

Gold bars

“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.

Best regards,

Steve

Your Daily Bit of Wall Street Wit & Wisdom

Gold

Gold bars

“They wonder much to hear that gold, which in itself is so useless a thing, should be everywhere so much esteemed, that even men for whom it was made, and by whom it has its value, should yet be thought of less value than it is…”
— Sir Thomas More

The Midas metal, a longstanding store of value, often shunned by investors, is showing signs of shining anew.

Best regards,

Steve

King Dollar’s Crown Wobbles

Brian Dykstra portraying King John

Photo by Teresa Wood, Brian Dykstra as King John, h/t broadwayworld.com

by Steven Sarnoff

As the stock market’s decline intensifies, one wonders what central bankers will do.  Will they coordinate to take down the US dollar?  Their objective would be to boost their balance sheets and pump out enough liquidity to prop up ailing share prices.

Will Treasury Secretary Munchkin Mnuchin again call the PTT (Plunge Protection Team)? Stocks are sliding hard.  It will likely take a sizeable sovereign effort to turn the state of the market.

Continue reading

Ready For A Reversal In Gold

by Steven Sarnoff

As we welcome August, we could be on the verge of an august rebound in gold.  My contrarian senses were tingling when Vanguard recently renamed its Precious Metals and Mining Fund to the Vanguard Global Capital Cycles Fund.  This exemplifies gold as an out of favor investment and is a sign the conditions may be right for forming a significant bottom.

Continue reading

Don’t Suffer Paralysis From Over-Analysis In Your Trading

paralysis

by Steven Sarnoff

                    “If you spend too much time thinking about a thing, you’ll never get it done.” — Bruce Lee

This week, with more earnings and big mergers on parade, there is plenty for traders to digest.  Add to that, the myriad of technical tools available at your mouse-clicking fingertips and you can see how traders can easily be bogged down and confused by conflicting indicators and information overload.

As a technical analyst, aka a “chartist,” you have the ability to overlay a veritable smorgasbord of studies on your chart.  That can quickly clutter the picture and cause indecision.

So Sarnoff, what is your solution?

The answer is to study the technical indicators, pick a handful you like best, and use them.

I want my chart to paint a vivid picture, depicting  the human behavior (buying and selling) that drives the direction of market price movement.  I prefer to look at a clean and clear chart, one that readily reveals which side (buyers or sellers) has the advantage.  I can then go about determining when and where the balance of power is likely to shift. Continue reading