Sep

11

Trading CatalystsTrading Catalysts by Robert Webb is a worthwhile read. The author discusses market reaction to events like geopolitics, weather, intervention by policymakers, economic reports and fat-finger trades. The important message is that the market reacts inconsistently to similar senarios, and this in itself ought to be of value, espcially to a novice trader. the author recounts some of these events, in detail, recounting intraday price moves and then the subsequent days' price moves. Of course it is not possible to detail every catalyst, and one could criticize it for this; also, we have to take the author's word and interpretation for each topic. But for $25, let's not get too carried away! For those willing to turn the pages it will likely offer a few ideas.

Jul

27

The Nth time I saw Marc Faber's name cross the tape, I was inspired to run his name on blogpulse.com, to see how his mentions correlate with market action.

The graph speaks for itself.

Tim Humbert adds:

I used to follow his material while it was free, but lost track. And yes, it was quite bearish.

Someone mentioned his name a few weeks ago, and I decided to compare his fund's performance to the market's from 1998, when it's first listed on Bloomberg. He seems to have done well; though if you look from the trough in stocks in 02/03 he has underperformed. 

Faber    SPX

2006  188.90   146.28
2005  170.26   128.75
2004  169.39   125.00
2003  157.05   114.69
2002  147.85    90.75
2001  147.94   118.31
2000  137.99   136.06
1999  120.57   151.41
1998  106.36   126.67

Vance Humbert adds:

Try using the unyielding David Tice, whom Bloomberg quotes today as saying "this could be the big one," and a somewhat similar pattern emerges.
 

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