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Hallmark Trade of the 2003 Bear Market

 

7 Step FEEDjam Process:

 

1. Gap the market down on the open

 

2. Check the decline after 100 points

 

3. Execute a salubrious consolidation at the lows, a.k.a "high anxiety" style

 

4. Gradually feed some bids into the futures pits to build the other side of the J-Lo Saucer Bottom, disguising it as a "bear flag" which everyone shorts into

 

5. Manage the bids to coil the index intraday trading to a super tight range, no more than .25 ticks in either direction

 

6. After a 38% retracement of the morning decline, send in the Program Robots with huge block buy orders every 5 minutes to start the Sawtooth Boner Blast

 

7. Once the indexes reach the 45 degree Boner Angle, 90 minutes before the close, unleash the 2nd wave of Robots to send the indexes into a vertical meltup mode into the close.

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Martin Hutchinson has written a wonderful article on corporate options expense that includes this great intro:

 

"Like a vampire whose captors can't find a silver stake, un-expensed stock options still wander among us, distorting earnings comparisons wherever they alight. The Financial Accounting Standards Board has now announced it won't produce a definitive ruling on expensing stock options until the second half of 2004 -- presumably after, not before November 2, 2004. Wimps!"

 

http://www.upi.com/view.cfm?StoryID=200310...20-050048-2566r

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"0.5% jump"

 

Jump? Jump????

 

That's ZERO point five. One half of one per cent. They call that a jump? Normal moves in that index are 10 to 20%.

 

What a crapload.

Yah, exactly.

 

Kind of like Scamazon posting a 'big increase in net earnings'.

 

Let's see, instead of losing $35M like last year, they earned $16M on $1.13B in sales.

 

That's a whopping 1.4% profit margin.

 

Also known as "noise" about the mean. Which seems to be zero.

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I've looked high, and I've looked low.

 

All over the various bullhorn sites and I can't find a single reference to the fact that the HUI took out a multi-year high yesterday.

 

If the free stockcharts service went back far enough, I could even tell you how many.

I think Wndy spoke about it yesterday.

 

Funny how all of that worked out that way... IMO, lots of bearish goldbugs out there. Sometimes that's a good thing :rolleyes:

 

I'd just like to see Silver hold the 5.00 mark, from here on out. <_<

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The Fed has not been supportive of the market in recent weeks. One might say they are making an attempt at micro-management of the markets with their mouths and money. Perhaps they will let it slide without intervention. It remains to be seen, however, whether they can ease this thing down to more responsible levels and attempt a salubrious consolidation at the lows.

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"0.5% jump"

 

Jump? Jump????

 

That's ZERO point five. One half of one per cent. They call that a jump? Normal moves in that index are 10 to 20%.

 

What a crapload.

How true. Amazing how rounding error is largely responsible for this "explosive bull market".

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