With the Dow back over 10,000, I like a few other people have been considering a taking a few more positions, sticking my neck back out if you will. This got me thinking about the very basic principles of the market. I wanted to share with you a brief list put together by my friend Hale of Bonddad Blog. These are a few basic points that still resonate with him while trading. What do you think, what are some of the basics that you'll never loose? Leave us a comment and be sure to visit Hale at Bonddad blog.
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For a guy who lives in the 21st century I have a remarkably old fashioned view of the market. My favorite technical analysts -- Gartley, Murphy, Gann and Schabacker -- are some of the earliest practitioners of the art. There are a few basic points from these people that still stand out for me.
First, you can make money on both sides of the markets – going long and going short. This means we can always be invested so long as we know the market’s direction. To know the market’s direction we need to know how the fundamentals of the US economy are doing – is the economy expanding or contracting? This requires basic knowledge about the economy. If you don’t know it, learn it. Continue reading "An Old Fashioned View..."
At the height of its late 2005 rally, natural gas in the U.S. was selling for just over $16/MMBtu, 350% higher than today’s price of $3.56. The oil/gas ratio, now over 18, is an all-time high… suggesting that natural gas is dirt cheap. So, it’s a buy, right?