A Few Sunday Reading Links
With the upcoming week being a shortened week, and many traders being on vacation, let’s look at a few links and blog posts to get us started as we prepare for the upcoming week.
Big Picture: Why Does -20% = Bear Market?
“Best as I can figure, the 20% number is a not-quite-a-random number — more than a 10% correction, less than a full blown crash (which for all we know, could be “offically” 30%).”
“Rather than focus on terminology, investors should be considering their risk management strategies, what they are doing to preserve capital, and how they are psychologically prepared to deal with what could be an extended downturn.”
Big Picture: “No Fear”
“S&P500 investors are on the verge of experiencing something not seen for a very long time — a losing decade. If markets continue their losing streak for a few more months, that is a realistic possibility. The S&P500 is now down 4.8% since June of 1999. To hit the decade mark, the SPX would need to be below the 1998 close of 1,229 — less than 50 points below Friday’s close of 1278.38 come December 31st. This has not occurred since the 1930s.”
Dr. Steenbarger: “Four Lessons I’ve Learned From Coaching Hedge Fund Portfolio Managers”
1. Success is Individualized
2. The Game is Different
3. The Environment Matters
4. Success Starts at the Beginning
Infectious Greed: “Worst Dow Jones Junes Since Depression”
Disciplined Investor: “On Oil and Manipulation“
Chris Perruna: “Market Snapshot” Excellent charts all worth viewing.
Abnormal Returns: “Hot Money Mess (Links)”
Crossing Wall Street: “Deconstructing the Dow”
Quantifiable Edges: “Does A Lackadaisical Put/Call Keep The Market From Bouncing?”
“…two studies that show what has happened when negative price action has been accompanied by a lackadaisical put/call”
Adam’s Daily Options Report: Deconstructing the…… Un-Deconstructable.
Good assessment on Jim Cramer’s recent bad call on RIMM and his deconstruction of what he (thinks he) actually said (but didn’t).
“Gaming earnings heads on can lead to particularly disastrous results. But it’s never about the bad pick, anyone who has ever touched a stock knows we all make mistakes.”
Declan Fallond (Zignals Blog): “S&P Moving Average Behavior”
“I decided to take a look at the relationships between the 20-day, 50-day, and 200-day MAs with respect to each other and the current value of the S&P to see if there was in any predictive value as to what may follow over the coming months.”
Be safe next week if you’re traveling… or trading. Be extra careful if you’re traveling AND trading.