Your Almost Daily Bit of Wall Street Wit & Wisdom

be prepared

h/t John Lee Post

“Over prepare.  Do the work with intensity and focus – it’s that attitude that starts attracting people/opportunities.  You start believing in yourself.  You start accomplishing things you weren’t supposed to accomplish.”
— Ian Cassel, @iancassel

I was not a Boy Scout, but I believe they’ve got a good motto, “Be Prepared.”

You should have a complete game plan for each trade.  You know what to do if you’re right and what to do if you’re wrong.

You are in a state of readiness so that surprises don’t surprise you.  Negative surprises won’t take you out.  You’ll be there to reap the rewards when positive surprises come your way.

Have a great weekend!

Best regards,

Steve

DIS Here

Last Sunday’s Options Hotline headline for our Disney play was, “Content is King.”  This morning, Disney (DIS) shares gapped up 5%, up to next resistance, following yesterday afternoon’s positive earnings report.

This gave Options Hotline subscribers the opportunity to multiply their money on our recommended call options, triggered 11-04-19 at $3.15, traded 11-08-19 at $6.87, +118% in 4 days, with an always known and strictly limited risk!

That is Superleverage Power on Display.

Warren Buffett and Charlie Munger describe Disney as, “…kinda like having an oil field where you pump out all the oil and sell it and then it all seeps back in over seven or eight years.”

I can’t guarantee that all my recos will become multipliers, but I do my best each week to find option winners for you, my great subscribers.

Subscribe today to vie for fun and profit and stay a step ahead of the crowd.

Relax and enjoy your weekend!

Best regards,

Steve

A Note On Volume

Volume can be a useful tool for traders.  Trading volume tallies the number of shares (for equities) or contracts (for futures) traded on a given day.

Price is king, but volume can indicate the force behind a price move.  This provides valuable information.

For example, on our daily candlestick chart of JPM below, note that over the past few weeks, volume (overlaid on the chart) on down days (black bars) has been greater than volume on rebounds (red bars).

JPM chart

Chart by Steven Sarnoff h/t stockcharts.com

Low volume on a rebound is not a good sign.  It tells me the bounce is more of a short-covering rally and adds weight to the evidence in favor of a continuation lower.

As with all indicators, there is no certainty; there is only probability.

Subscribe to Options Hotline today to vie for fun and profit.

Best regards,

Steve

 

Your Almost Daily Bit of Wall Street Wit & Wisdom

“Most people don’t want the truth. They want a secret. So if that’s what you want, I’ll give you the only secret you will ever need—there are no secrets.”
— Nick Maggiulli, @dollarsanddata

There is no holy grail for traders, but there are great tools to help you.  With knowledge, courage, discipline, and hard work you can put probability on your side.

Best regards,

Steve

Your Almost Daily Bit of Wall Street Wit & Wisdom

“In maths, 10 x 1 is always the same as 1 x 10, but in real life, it rarely is.  You can trick ten people once, but it’s much harder to trick one person ten times.”
— Rory Sutherland

h/t Jim O’Shaughnessy, @jposhaughnessy

It’s good to be back from a wonderful family celebration in New York.  After all these years in California, there’s still just a little New Yorker left in me.

Best regards,

Steve

Your Almost Daily Bit of Wall Street Wit & Wisdom

“What is life but playing with time..?”
— Keith Richards

We’re heading up to LA for a few days to see our ‘kids,” celebrate our 31st Wedding Anniversary, and jam with the Stones!:-)

Their sound is timeless and always great to hear.  In my opinion, the old musicians are better than the old athletes; they can still play.

Investing is something done over time.  Speculators must be keenly aware of time.  Options are wasting assets, whose time decay accelerates over the last few weeks of their life.

In life, time truly flies.  We’ll be trying to slow it down a bit over the next few days, before we pick up the scrapings and get back to work.

Best regards and gold rings on ya,

Steve