h/t AP Photo/Ted Shaffrey, File)
“Insane: Hertz is trying to sell $1 billion of soon-to-be-worthless new stock to the idiots who keep pushing up the price of its soon-to-be-worthless old stock to help pay for some of its bankruptcy.”
— Matt O’Brien, @ObsoleteDogma
“There is a huge difference between understanding the forces that create value v being able to extract value. People confuse these.”
— Steven Goldstein, @AlphaMind101
May the 4th be with you.
John Cleese’s silly walk, Monty Python’s Flying Circus, 1970, h/t arstechnica.com
In the stock market, earnings season is known as “silly season.” This week, a new silly season kicked off and it may very well mark a return of volatility to trip up complacent market participants.
As the catastrophic effects of the global Covid-19 pandemic bash corporate earnings, investors will be adjusting their once-lofty expectations.
Throughout market history, a shakeout and break has been the catalyst for getting investors to examine earnings in their proper light.
We’ve seen the market move violently from fear to FOMO (fear of missing out). I suspect we will witness another bout of fear before this chapter is through.
There’s a tremendous struggle going on between inflationary and deflationary forces.
I think it’s silly to try and know what the market will do. Instead, our technical analysis focuses on what the character of the behavior of market price movement is saying.
In our 31 years of publication, we’ve built upon a knowledge based on experience. Subscribe to Options Hotline today to stay a step ahead of the crowd.
Stay safe and be well.
Best regards and in good humor,
UC San Diego’s Geisel Library, h/t sandiegomagazine.com
“You will come to a place where the streets are not marked.
Some windows are lighted. But mostly they’re darked.
A place you could sprain both your elbow and chin!
Do you dare stay out? Do you dare go in?
How much can you lose? How much can you win?
And IF you go in, should you turn left or right…
or right-and-three-quarters? Or, maybe, not quite?
Or go around back and sneak in from behind?
Simple it’s not, I’m afraid you will find,
for a mind-maker-upper to make up his mind.”
— Dr. Seuss, Oh The Places You’ll Go!
h/t Joseph Fahmy, @jfahmy
“Be patient, keep studying, and be 100% prepared. Later, at the least expected time, when all the news is terrible, winter will ultimately pass and a great new bull market will suddenly spring to life…So get prepared and do your homework. Create your own buy and sell rules that you will constantly use.”
That’s some bear market investing wisdom from William O’Neil.
“Embrace selloffs because that’s when the market gives you its best clues.”
— Joseph Fahmy, @jfahmy
Keeping your eyes open to developing divergence between the action of individual stocks and the market can provide powerful information.
If a stock is holding up well while all around are down sharply, that tells you something good.
UCLA h/t dailybruin.com
“When the market educates you by taking your money, the choice is yours whether to use it as motivation or an excuse to give up. You have to get used to it. Investing is a life long education and its teacher is loss.”
— Ian Cassel, @iancassel
h/t @natgeo, @stephenwilkes
“Bear markets don’t determine who’s right. They determine who’s left.”
— John Boorman, @JBoorman
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!
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!
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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!