Europe Needs More Deal Makers

266 views

Immigrant hustle has always fascinated me. For the past two days a crew of arborists has been literally swinging tree-to-tree through my neighborhood. Their chainsaws and foreign banter have been a constant for the last 24 daylight hours, making ever more pleasant the wealth destruction occurring in my book today.

If you would have asked me last week if I expected NRG to be 6% in the hole by today I would literally have laughed in your face and offered you a dual by slapping you with a little silk glove.  It’s plunging into the abyss today along with the other lemming utilities.

It’s comrade in my “flight to safety” DOC is doing OK. Still, I want to ram my fist down the computer screens throat. So after I worked the futures down the zipper and back to yesterday’s range I changed gears and went to negotiate with the tree choppers.

Business, but in particular investing, is about finding the value of something and paying less for it. Value is based on the perception and interaction of buyers and sellers. The charts you see me post each morning are an attempt to apply objective numbers to these interactions.

Person-to-person interactions are different then clicking a button on a screen—a physical presence for one. Nothing closes a deal like counting cash in front of someone. It’s like, do you want to be this guy?

happy chainsaw

Or do you want to want to be this loser?

NOworkChainsaw

TAKE THE DEAL, here’s the money. America is at the mercy of Greece and apparently they don’t like deals. Meanwhile, everyone’s ignoring tomorrow morning’s NonFarm Payroll, therefore I expect a huge reaction when it reveals more hamburger eating citizens have dropped out of the work force and unemployment is on the rise further confirming the inability of The Fed to raise rates. Until then, I’ll go back to dodging falling tree limbs.

3 Days, 3 Pro Gaps

232 views

Futures have been busy inside the hours of globex. Futures have been busy during RTH. Futures, have been busy. The globex open was delayed last night while the exchange made an adjustment for a leap second. It’s rare, and weird, but if you’re a real market junky click here for the full CME documentation. Despite the shortened session we managed to print a highly abnormal range, beyond second sigma, on abnormally high volume. Greece officially defaulted on the IMF last night, but the session was otherwise without much headline volatility.

On deck this morning, we have ISM manufacturing at 10am but attention is likely to soon shift to tomorrow morning’s NFP release, set to be out a day early due to the markets being closed Friday.

Yesterday we printed a neutral day inside of the lower half of Monday’s trend day down. Sellers worked the overnight gap closed before buyers came in and in one swift rotation pushed through the entire range to put us neutral before we settled back to the mid.

The overnight action has created a curious case—we now have a gap below that likely needs to be resolved, but we’re also trading just below a few upside gaps. Also just above is the VPOC of the whole year at about 4450. Sellers roundly rejected the CVPOC Monday morning, but now we’re back up to test their conviction.

Heading into today, my primary expectation is for buyers to push off the open, gap-and-go style, to take out overnight high 4441.75. This sets up a move to the CVPOC at 4450 and the open gap at 4454 where we churn about before ultimately fading lower into the afternoon.

Hypo 2 sellers push into the overnight inventory to test yesterday’s range 4412.50 but stall ahead of the range setting up a move higher to take out overnight high 4441.75 and target the CVPOC/open gap 4450/4454.

Hypo 3 sellers push down through yesterday’s range 4412.50 setting up a gap fill to 4390. Sellers overshoot the gap and take out overnight low 4388.75 setting up a test of swing low 4368.25. This hypo will require heavy OTF participation because we’ve managed to form some decent structure below (see market profile).

Levels:

07012015_NQ_VPMP

Ping Pong: Your Move Bulls

312 views

So we’re neutral today, after a trend day down, so to be skeptical of this afternoon’s strength is reasonable. And though I’ve been buying back into the market this morning, I am leaving ammo in case we see more weakness. In fact, I welcome weakness as it will allow to properly position my book.

But here’s the thing with timing. You want to have the in general right spot but to think you’ll be subjected to no heat is wishful thinking at best and a recipe for squirrel-like waffling at worst. So we may be 100 Nasdaqs up tomorrow and I will only be riding half steed. So be it, this happens all the time.

I took an old school QLD long this morning. And since I endeavor to buy a used car in the future, I started a new position in TRUE. It’s more a technical trade than a story trade, thank gawd, but I like the website nonetheless.

Aside from that Apple is faring well, Twitter is my largest position, Tesla is up to boot, and people are finally waking up to how sweet a deal DOC is right now.

Working Another Pro Gap into Month-End

216 views

Nasdaq futures are priced to start month-end/quarter-end with a pro gap up. Prices worked higher for most of the overnight session and managed to print an above average range on above average volume. The action, overall, resembled an imbalanced drift higher and was confined to the bottom half of yesterday’s range.

At 9am the Case Shiller Composite was released and saw little reaction. At 9:45 we have Chicago Purchasing Manager, and at 10am Consumer Confidence. Overall, these economic events are likely to contribute to a volatile, choppy environment this morning.

Yesterday we came into the week pro gap down, an extreme gap that was driven by news over the weekend about Greece. After bulls mounted a half-gap fill they ran into sellers and the market rolled back over. We spent the rest of the session trending lower. There were signs of balance in the morning, but that quickly gave way to OTF selling. The volume was high at end-of-day and enough to shift the VPOC down near session low.

According to market profile theory, any entry in the direction of yesterday’s trend (short) is a risk free entry into today’s session because we are very likely to exceed its session low by at least a tick. Therefore my primary hypothesis today is for sellers to push into the overnight inventory to close the overnight gap down to 4380 setting up a test of yesterday’s low 4368.25. Look for sellers to target a move down to 4353.75. Look for responsive buyers north of 4347.25.

Hypo 2 buyers gap-and-go higher, stall out around 4411.50 and we roll over and close the overnight gap to 4380, test below yesterday’s low 4368.25 and quickly find responsive buyers and two-way trade ensues.

Hypo 3 buyers push up through 4414.25 and we work through the upper distribution to target 4430 then a stretch target of 4440.

Levels:

06302015_NQ_VPMP

I’m Literally Dead

433 views

After averaging into Apple calls this afternoon I walked away from the terminal to clear my head. I dressed in rugged clothes and skateboarded to the nearest gas station where I proceeded to panhandle for change and cigarettes.

People are truly kind. They looked past my designer sunglasses and occasional iPhone use and reached into their pockets. You may be saying, “Here it is. Raul’s gone off the reserve, boy ain’t right.” Your judgment couldn’t be further from the mark.

This is an old stoic exercise, one that subjects its participant to perceived reality. Is this truly the fate I so greatly fear? To be a broke hipster in the United States?

If I had more time (I’m 10,000x busier than you) I would spend the whole week cavorting about town—bagging cans, sleeping under the bridge, and hustling deals with the local business owners. If a market liquidation makes you uncomfortable, then go ask strangers for money and odd jobs.

My book is down about 2.3% today despite being cash heavy and positioned into old man NRG and DOC. I made money trading the futures, nearly selling top tick this morning but booking way-way-waaay-too-soon.

Tonight I’ll lift heavy objects for recreation, watch my big ass teevee, then sleep in my fancy adjustable bed. Tomorrow I will slay each and every hater with swift and decisive swings of my kukri.

The Most Irrelevant Sell Off This Year

344 views

walterSobchak

Our brothers in arms died face down in the muck so that you and I can enjoy this stocked market.  To think Greece, a strumpet of a country, will do this to the republic, on this week, this god blessed-week of Independence from the malignant recourse imposed by British Royals is absurd. I spit on the idea.

I cannot change the fool who directs their decisions with emotion. I can only will myself into acceptance of all events that henceforth transpire and make steadfast the execution of my objective plans—written well outside of wartime. As such, I have added to my Apple risk, risk I took with the inherent plan of adding into weakness AT INCEPTION.

This is a patriotic trade, a degenerate gamble that investors will bless Apple with more market cap for being way ahead of the curve on the homo front.  I expect bears will be Tim Cook’d in no time.

This country was built by the gambler, but if the market has truly set out on a course to subjugate the speculative bull, then my other purchase from today, shares of NRG, should weather the storm fine.  Son of a motherless goat I’m all cashed up too, fully prepared to buy margin liquidations so bring it.

 

Starting The Week Pro Gap Down

248 views

Nasdaq futures are down as we head into the holiday shortened week after news from Greece began to deteriorate over the weekend. Futures opened and immediately pushed gap down to 4400 before a well-balanced, 2-way trade ensued. Volume is abnormal but not breaching the extreme 2nd sigma threshold. The range on trade post-gap down is elevated, but including the range of the gap we have extreme 2nd sigma range.

I envision this Greek news slowly fizzling out this week, but as for today, it’s likely to be of elevated importance. With headline risk high, we may see less impact to today’s only economic event—Pending Home Sales at 10am. Keep in mind, we have NFP data out on Thursday instead of Friday due to Independence Day (USA#1).

Last week we started with a big gap up and essentially spent the rest of the week fading it lower. On Friday liquidation accelerated through an air pocket present on the profile before finding responsive buyers to end the week.

Heading into today, my primary expectation is for buyers to push into the overnight inventory and test higher. Look for sellers to defend 4446 and two way trade to ensue, north of the overnight low 4400.

Hypo 2 buyers push up through 4446.75 and continue higher to 4467. If they can breach this levels as well, look for a throwback to the scene of the crime, the open gap up at 4481.75. Note, this is pro gap territory—thus attempting to fade it is an effort requiring “professional” resources. The half gap scenario above is more likely.

Hypo 3 we take out overnight low 4400 and test below prior swing low 4386.50. Look for responsive buyers otherwise liquidation grip the market and sellers push to target 4353.50.

Levels:06292015_NQ_VPMP

About To Be Real Patriotic This Week

391 views

At some point you have to stomp your boot into the mud and declare your allegiance. In this country, USA#1, we celebrate the day we effectively told Great Britain to, “fuck off” and leave us alone. Sure, these days America owes money all over the world, including to known pornographers, but that’s because we borrowed (read: took) that money.

We’re like a gigantic Greece except that we beat back the Germans in WWII—and we’d do it again.

This Independence Day promises to be the gayest one on record. Citizens are preparing to guzzle beer and barbecued meat, staples of southern living, whist burning confederate flags on their front lawns. They will be replaced by rainbow prints and men wearing shorts cut above the knee.

The Weekly Strategy Session is published inside Exodus. In it, I cover my favorite patriotic picks for the short week, as well as some companies that will begin their decent into extinction, much like the dying ethos of southern oppression.

This is a brave new world lads. Has USA jumped the shark and gone full Rome? Or will we make it a little bit further than the last great republic? The universe is a series of attempts at going a little bit further than the last great—just like beating a video game. I am firmly in the camp that USA is Super Mario trumped up on a star, raccoon suit, and belly full of mushrooms. Let’s do this!

This Is Like Flight School for Traders

403 views


mavschool

Each week I put together a report called the Strategy Session.  For a while it was a standalone product.  Now, it’s included with your Exodus membership.  In it, I recap the prior week’s action and build context and actionable trade setups for the following week.

Each week there is a section where we look very closely at one of the tools inside Exodus.  Since the gates are open to the public this weekend here’s a sneak peek at this week’s educational piece.  Hot from the presses at Exodus Academy, enjoy:

In Exodus, we compartmentalize stocks into several sub-groups.  Take Shake Shack (ticker: SHAK) for example.  Shake Shack is a stock, more specifically a service sector stock, more specifically a restaurant.

The idea to pigeonhole stocks into sectors and industries has its roots in methods established around 300 B.C…seriously.  Aristotle was a philosopher and a scientist.  The last great Greek philosopher, he was a meticulous organizer who wanted to clarify our concepts, especially of nature.  His explanations are based on sensory observation and are a foundation of logic.  Instead of a lecture on Aristotle, here’s an application of his work using my oldest pet:

A few years ago I adopted a nearly-feral dachshund.  Her skittish behavior and incredible speed earned her the name Momo—she behaves like a momentum stock!

Momo is a living creature, more specifically an animal, more specifically a vertebrate, more specifically a mammal, more specifically a dog, more specifically a dachshund, more specifically a female dachshund.

This is a very Aristotelian (read: logical) way of describing my doggy.

We built Exodus to make ourselves better investors and traders.  In the hyper-competitive field of public investing, it is vital to comport yourself to established facts.  Our belief is that anyone can make good decisions if presented with the right information.  Therefore the software confronts you with well organized statistics.  Armed with probabilities and logic, members are empowered to make objective decisions.  Every stock in the system belongs to a sector and industry, here’s SHAK:


SHAK_sector_industry

On the Dashboard page, we display the market caps of each sector.  This is accomplished by coagulating the markets caps of all 4,740 stocks into their respective sector.  The result is the simple-to-understand Sector Composite Market Cap chart, see below:

SectorCompMarCap

If we go to the Industry page, we can then see the intraday performance of these sectors.  This is like peeling back the curtain and looking under the surface of index prices—indices like the S&P 500, Nasdaq 100, Russell 2000, and Dow Jones Industrial Average (more compartments!).

Check out Friday’s readings.  They were telling a story.  Tech was weakest sector on the session which put some context behind the tech-heavy Nasdaq being down more than the other indices.  It also called the early afternoon weakness into question when we saw the selling wasn’t broad-based, but instead isolated to a few sectors.  See below:

SectorIntradayPerf

Not bad right?  Free trials end Sunday, if you haven’t signed up yet email me twosmuth@gmail.com now.  At the stroke of midnight Sunday any straggler found within our kingdom with the exiled via our human catapult. 

GET TO THE CHOPPA

307 views

After the market closes I will be joining the venerable Option Addict inside After Hours with Option Addict to discuss Exodus. The Fly will be there too, inside the comment section.

If for whatever reason you opt to cut out of the office early to guzzle beer cans and shoot dice, then you can just take a demo of the software. Email me twosmuth@gmail.com. This will be short lived, this weekend only, but nevertheless a benevolent act from your team at iBankCoin.

Europe Needs More Deal Makers

266 views

Immigrant hustle has always fascinated me. For the past two days a crew of arborists has been literally swinging tree-to-tree through my neighborhood. Their chainsaws and foreign banter have been a constant for the last 24 daylight hours, making ever more pleasant the wealth destruction occurring in my book today.

If you would have asked me last week if I expected NRG to be 6% in the hole by today I would literally have laughed in your face and offered you a dual by slapping you with a little silk glove.  It’s plunging into the abyss today along with the other lemming utilities.

It’s comrade in my “flight to safety” DOC is doing OK. Still, I want to ram my fist down the computer screens throat. So after I worked the futures down the zipper and back to yesterday’s range I changed gears and went to negotiate with the tree choppers.

Business, but in particular investing, is about finding the value of something and paying less for it. Value is based on the perception and interaction of buyers and sellers. The charts you see me post each morning are an attempt to apply objective numbers to these interactions.

Person-to-person interactions are different then clicking a button on a screen—a physical presence for one. Nothing closes a deal like counting cash in front of someone. It’s like, do you want to be this guy?

happy chainsaw

Or do you want to want to be this loser?

NOworkChainsaw

TAKE THE DEAL, here’s the money. America is at the mercy of Greece and apparently they don’t like deals. Meanwhile, everyone’s ignoring tomorrow morning’s NonFarm Payroll, therefore I expect a huge reaction when it reveals more hamburger eating citizens have dropped out of the work force and unemployment is on the rise further confirming the inability of The Fed to raise rates. Until then, I’ll go back to dodging falling tree limbs.

3 Days, 3 Pro Gaps

232 views

Futures have been busy inside the hours of globex. Futures have been busy during RTH. Futures, have been busy. The globex open was delayed last night while the exchange made an adjustment for a leap second. It’s rare, and weird, but if you’re a real market junky click here for the full CME documentation. Despite the shortened session we managed to print a highly abnormal range, beyond second sigma, on abnormally high volume. Greece officially defaulted on the IMF last night, but the session was otherwise without much headline volatility.

On deck this morning, we have ISM manufacturing at 10am but attention is likely to soon shift to tomorrow morning’s NFP release, set to be out a day early due to the markets being closed Friday.

Yesterday we printed a neutral day inside of the lower half of Monday’s trend day down. Sellers worked the overnight gap closed before buyers came in and in one swift rotation pushed through the entire range to put us neutral before we settled back to the mid.

The overnight action has created a curious case—we now have a gap below that likely needs to be resolved, but we’re also trading just below a few upside gaps. Also just above is the VPOC of the whole year at about 4450. Sellers roundly rejected the CVPOC Monday morning, but now we’re back up to test their conviction.

Heading into today, my primary expectation is for buyers to push off the open, gap-and-go style, to take out overnight high 4441.75. This sets up a move to the CVPOC at 4450 and the open gap at 4454 where we churn about before ultimately fading lower into the afternoon.

Hypo 2 sellers push into the overnight inventory to test yesterday’s range 4412.50 but stall ahead of the range setting up a move higher to take out overnight high 4441.75 and target the CVPOC/open gap 4450/4454.

Hypo 3 sellers push down through yesterday’s range 4412.50 setting up a gap fill to 4390. Sellers overshoot the gap and take out overnight low 4388.75 setting up a test of swing low 4368.25. This hypo will require heavy OTF participation because we’ve managed to form some decent structure below (see market profile).

Levels:

07012015_NQ_VPMP

Ping Pong: Your Move Bulls

312 views

So we’re neutral today, after a trend day down, so to be skeptical of this afternoon’s strength is reasonable. And though I’ve been buying back into the market this morning, I am leaving ammo in case we see more weakness. In fact, I welcome weakness as it will allow to properly position my book.

But here’s the thing with timing. You want to have the in general right spot but to think you’ll be subjected to no heat is wishful thinking at best and a recipe for squirrel-like waffling at worst. So we may be 100 Nasdaqs up tomorrow and I will only be riding half steed. So be it, this happens all the time.

I took an old school QLD long this morning. And since I endeavor to buy a used car in the future, I started a new position in TRUE. It’s more a technical trade than a story trade, thank gawd, but I like the website nonetheless.

Aside from that Apple is faring well, Twitter is my largest position, Tesla is up to boot, and people are finally waking up to how sweet a deal DOC is right now.

Working Another Pro Gap into Month-End

216 views

Nasdaq futures are priced to start month-end/quarter-end with a pro gap up. Prices worked higher for most of the overnight session and managed to print an above average range on above average volume. The action, overall, resembled an imbalanced drift higher and was confined to the bottom half of yesterday’s range.

At 9am the Case Shiller Composite was released and saw little reaction. At 9:45 we have Chicago Purchasing Manager, and at 10am Consumer Confidence. Overall, these economic events are likely to contribute to a volatile, choppy environment this morning.

Yesterday we came into the week pro gap down, an extreme gap that was driven by news over the weekend about Greece. After bulls mounted a half-gap fill they ran into sellers and the market rolled back over. We spent the rest of the session trending lower. There were signs of balance in the morning, but that quickly gave way to OTF selling. The volume was high at end-of-day and enough to shift the VPOC down near session low.

According to market profile theory, any entry in the direction of yesterday’s trend (short) is a risk free entry into today’s session because we are very likely to exceed its session low by at least a tick. Therefore my primary hypothesis today is for sellers to push into the overnight inventory to close the overnight gap down to 4380 setting up a test of yesterday’s low 4368.25. Look for sellers to target a move down to 4353.75. Look for responsive buyers north of 4347.25.

Hypo 2 buyers gap-and-go higher, stall out around 4411.50 and we roll over and close the overnight gap to 4380, test below yesterday’s low 4368.25 and quickly find responsive buyers and two-way trade ensues.

Hypo 3 buyers push up through 4414.25 and we work through the upper distribution to target 4430 then a stretch target of 4440.

Levels:

06302015_NQ_VPMP

I’m Literally Dead

433 views

After averaging into Apple calls this afternoon I walked away from the terminal to clear my head. I dressed in rugged clothes and skateboarded to the nearest gas station where I proceeded to panhandle for change and cigarettes.

People are truly kind. They looked past my designer sunglasses and occasional iPhone use and reached into their pockets. You may be saying, “Here it is. Raul’s gone off the reserve, boy ain’t right.” Your judgment couldn’t be further from the mark.

This is an old stoic exercise, one that subjects its participant to perceived reality. Is this truly the fate I so greatly fear? To be a broke hipster in the United States?

If I had more time (I’m 10,000x busier than you) I would spend the whole week cavorting about town—bagging cans, sleeping under the bridge, and hustling deals with the local business owners. If a market liquidation makes you uncomfortable, then go ask strangers for money and odd jobs.

My book is down about 2.3% today despite being cash heavy and positioned into old man NRG and DOC. I made money trading the futures, nearly selling top tick this morning but booking way-way-waaay-too-soon.

Tonight I’ll lift heavy objects for recreation, watch my big ass teevee, then sleep in my fancy adjustable bed. Tomorrow I will slay each and every hater with swift and decisive swings of my kukri.

The Most Irrelevant Sell Off This Year

344 views

walterSobchak

Our brothers in arms died face down in the muck so that you and I can enjoy this stocked market.  To think Greece, a strumpet of a country, will do this to the republic, on this week, this god blessed-week of Independence from the malignant recourse imposed by British Royals is absurd. I spit on the idea.

I cannot change the fool who directs their decisions with emotion. I can only will myself into acceptance of all events that henceforth transpire and make steadfast the execution of my objective plans—written well outside of wartime. As such, I have added to my Apple risk, risk I took with the inherent plan of adding into weakness AT INCEPTION.

This is a patriotic trade, a degenerate gamble that investors will bless Apple with more market cap for being way ahead of the curve on the homo front.  I expect bears will be Tim Cook’d in no time.

This country was built by the gambler, but if the market has truly set out on a course to subjugate the speculative bull, then my other purchase from today, shares of NRG, should weather the storm fine.  Son of a motherless goat I’m all cashed up too, fully prepared to buy margin liquidations so bring it.

 

Starting The Week Pro Gap Down

248 views

Nasdaq futures are down as we head into the holiday shortened week after news from Greece began to deteriorate over the weekend. Futures opened and immediately pushed gap down to 4400 before a well-balanced, 2-way trade ensued. Volume is abnormal but not breaching the extreme 2nd sigma threshold. The range on trade post-gap down is elevated, but including the range of the gap we have extreme 2nd sigma range.

I envision this Greek news slowly fizzling out this week, but as for today, it’s likely to be of elevated importance. With headline risk high, we may see less impact to today’s only economic event—Pending Home Sales at 10am. Keep in mind, we have NFP data out on Thursday instead of Friday due to Independence Day (USA#1).

Last week we started with a big gap up and essentially spent the rest of the week fading it lower. On Friday liquidation accelerated through an air pocket present on the profile before finding responsive buyers to end the week.

Heading into today, my primary expectation is for buyers to push into the overnight inventory and test higher. Look for sellers to defend 4446 and two way trade to ensue, north of the overnight low 4400.

Hypo 2 buyers push up through 4446.75 and continue higher to 4467. If they can breach this levels as well, look for a throwback to the scene of the crime, the open gap up at 4481.75. Note, this is pro gap territory—thus attempting to fade it is an effort requiring “professional” resources. The half gap scenario above is more likely.

Hypo 3 we take out overnight low 4400 and test below prior swing low 4386.50. Look for responsive buyers otherwise liquidation grip the market and sellers push to target 4353.50.

Levels:06292015_NQ_VPMP

About To Be Real Patriotic This Week

391 views

At some point you have to stomp your boot into the mud and declare your allegiance. In this country, USA#1, we celebrate the day we effectively told Great Britain to, “fuck off” and leave us alone. Sure, these days America owes money all over the world, including to known pornographers, but that’s because we borrowed (read: took) that money.

We’re like a gigantic Greece except that we beat back the Germans in WWII—and we’d do it again.

This Independence Day promises to be the gayest one on record. Citizens are preparing to guzzle beer and barbecued meat, staples of southern living, whist burning confederate flags on their front lawns. They will be replaced by rainbow prints and men wearing shorts cut above the knee.

The Weekly Strategy Session is published inside Exodus. In it, I cover my favorite patriotic picks for the short week, as well as some companies that will begin their decent into extinction, much like the dying ethos of southern oppression.

This is a brave new world lads. Has USA jumped the shark and gone full Rome? Or will we make it a little bit further than the last great republic? The universe is a series of attempts at going a little bit further than the last great—just like beating a video game. I am firmly in the camp that USA is Super Mario trumped up on a star, raccoon suit, and belly full of mushrooms. Let’s do this!

This Is Like Flight School for Traders

403 views


mavschool

Each week I put together a report called the Strategy Session.  For a while it was a standalone product.  Now, it’s included with your Exodus membership.  In it, I recap the prior week’s action and build context and actionable trade setups for the following week.

Each week there is a section where we look very closely at one of the tools inside Exodus.  Since the gates are open to the public this weekend here’s a sneak peek at this week’s educational piece.  Hot from the presses at Exodus Academy, enjoy:

In Exodus, we compartmentalize stocks into several sub-groups.  Take Shake Shack (ticker: SHAK) for example.  Shake Shack is a stock, more specifically a service sector stock, more specifically a restaurant.

The idea to pigeonhole stocks into sectors and industries has its roots in methods established around 300 B.C…seriously.  Aristotle was a philosopher and a scientist.  The last great Greek philosopher, he was a meticulous organizer who wanted to clarify our concepts, especially of nature.  His explanations are based on sensory observation and are a foundation of logic.  Instead of a lecture on Aristotle, here’s an application of his work using my oldest pet:

A few years ago I adopted a nearly-feral dachshund.  Her skittish behavior and incredible speed earned her the name Momo—she behaves like a momentum stock!

Momo is a living creature, more specifically an animal, more specifically a vertebrate, more specifically a mammal, more specifically a dog, more specifically a dachshund, more specifically a female dachshund.

This is a very Aristotelian (read: logical) way of describing my doggy.

We built Exodus to make ourselves better investors and traders.  In the hyper-competitive field of public investing, it is vital to comport yourself to established facts.  Our belief is that anyone can make good decisions if presented with the right information.  Therefore the software confronts you with well organized statistics.  Armed with probabilities and logic, members are empowered to make objective decisions.  Every stock in the system belongs to a sector and industry, here’s SHAK:


SHAK_sector_industry

On the Dashboard page, we display the market caps of each sector.  This is accomplished by coagulating the markets caps of all 4,740 stocks into their respective sector.  The result is the simple-to-understand Sector Composite Market Cap chart, see below:

SectorCompMarCap

If we go to the Industry page, we can then see the intraday performance of these sectors.  This is like peeling back the curtain and looking under the surface of index prices—indices like the S&P 500, Nasdaq 100, Russell 2000, and Dow Jones Industrial Average (more compartments!).

Check out Friday’s readings.  They were telling a story.  Tech was weakest sector on the session which put some context behind the tech-heavy Nasdaq being down more than the other indices.  It also called the early afternoon weakness into question when we saw the selling wasn’t broad-based, but instead isolated to a few sectors.  See below:

SectorIntradayPerf

Not bad right?  Free trials end Sunday, if you haven’t signed up yet email me twosmuth@gmail.com now.  At the stroke of midnight Sunday any straggler found within our kingdom with the exiled via our human catapult. 

GET TO THE CHOPPA

307 views

After the market closes I will be joining the venerable Option Addict inside After Hours with Option Addict to discuss Exodus. The Fly will be there too, inside the comment section.

If for whatever reason you opt to cut out of the office early to guzzle beer cans and shoot dice, then you can just take a demo of the software. Email me twosmuth@gmail.com. This will be short lived, this weekend only, but nevertheless a benevolent act from your team at iBankCoin.

Previous Posts by Raul3