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

Your Almost Daily Bit of Wall Street Wit & Wisdom

herd mentality

Bullish herd mentality, h/t B. Rich / Hedgeye

“Irrational behavior is, ironically, the most predictable behavior.”
— Chris Carolan, @spiralcal

The human behaviors of buying and selling drive market price movement.  Human behavior is often emotional and a herd mentality can kick in.

Market price tends to climb a “Wall of Worry” and slide down a “Slope of Hope.”

You saw it last week, the previous week, and you’re seeing it this week.  You’ll likely see it over the weeks ahead, as well.

Best regards,

Steve

Your Almost Daily Bit of Wall Street Wit & Wisdom

Geodesic dome

Geodesic dome, h/t R. Buckminster Fuller Estate and bfi.org

“I’m not trying to imitate nature.  I’m trying to find the principles she is using.”
— Buckminster Fuller

Often, patterns of market price movement resemble fractal patterns found in nature.

The thing for traders to keep in mind is that there is never certainty, only probability.

I hope your week gets off to a bright start.

Best regards,

Steve

Your Almost Daily Bit of Wall Street Wit & Wisdom

Point drops in any index, be it the DJIA or the S&P 500, are meaningless.  All these ‘3rd largest (point) drop in history’ stories are meant to mislead and scare you.  Don’t let them.  The only thing that matters is by what percentage did an index or stock decline or advance.”
— Jim O’Shaughnessy, @jposhaughnessy

 

Your Almost Daily Bit of Wit & Wisdom

simple does not equal easy

h/t Danny Cota

“You should constantly work on refining your strategy.  Simplicity is key.  Do more of what DOES work and less of what DOESN’T.”
— Nathan Michaud, @InvestorsLive

I’m a big believer in the K-I-S-S principle, Keep It Simple, Stupid.

Successful speculators know that Simple does not equal Easy.

That is an important distinction.  The characteristics of a successful trader are: Knowledge, Courage, Discipline, and Hard Work.

Best regards,

Steve

Your Almost Daily Bit of Wall Street Wit & Wisdom

beyond meat

Daily candlestick chart of Beyond Meat by Steven Sarnoff, h/t stockcharts.com

“Parabolic advances usually carry further than you think, but they do not correct by going sideways.”
— Bob Farrell

I get a kick out of the wild success of Beyond Meat’s IPO sparking scorn from analysts excoriating the “fake meat” company’s market cap exceeding that of larger and more established enterprises like Conagra.

Hah, they don’t see the future of food charted clearly before them.

For you, the animals, and the planet, Go Vegan!

Subscriber Note: We’re on the road and offline much of this week, headed up to the mountains for some fresh air and apple pie.

Best regards,

Steve

Your Almost Daily Bit of Wall Street Wit & Wisdom

“Whenever we are surprised by something, even if we admit that we made a mistake, we say, ‘Oh I’ll never make that mistake again.’ But, in fact, what you should learn when you make a mistake because you did not anticipate something is that the world is difficult to anticipate. That’s the correct lesson to learn from surprises: that the world is surprising.”
— Daniel Kahneman

 

Your Almost Daily Bit of Wall Street Wit & Wisdom

“Now that we found love what are we gonna do with it?”
— Kenny Gamble and Leon Huff

We enjoyed seeing Third World perform their 1978 hit cover of the song, originally performed by the O’Jays, at the San Diego Reggae Vegan Fest.

You find price direction, but what do you do with it?  Speculation may be simple, but it’s not easy. At Options Hotline, we’ve been helping our subscribers play and sensibly speculate for more than 30 years!

Our most recent recommendation on Verizon triggered on this morning’s open and traded +48% in a single session on a 2% move in the underlying shares, with an always known and strictly limited risk!

Irie!

We email our picks on Sunday evenings.  If that’s the kind of options action you’re looking for, subscribe to Options Hotline today.

Best regards,

Steve