Mar

18

BinocularsOne of the connections is viewing the market as a super scout, watching and measuring all events in other markets as an adjunct to how to play the current market game. As I have noted before, the super market scout, all seeing and sentient, noted what happened in the three final days of the insider trading decline at the big French bank, and noted a big down open on Monday, and a big down follow up, which was greeted by and was contemporaneous with two huge 5% opening Wednesday, and declines on Tue, and Wed Jan 22 and Jan 23 in the US each followed by an up 5%. This was finally completely recapitulated today, and it was like the Super Scout had seen an opportunity to unleash much capital from the slow moving and undercapitalized to support the infrastructure and then took it.

What other scouting tips does the Market Scout see as it scans the occurrences around the world and looks for opportunities?

Rodger Bastien adds:

The Super Market Scout reminds me of the great "bird dog" scouts I have known whose job is to identify amateur talent for Big League baseball clubs The truly great ones first and foremost look beyond the numbers of a player to figure out what is really going on with him. The sand lots are full of players who hit .400 but can't hit a curveball or whose bat speed won't allow him to turn on a pitch and drive it; pitchers who mow' em down at the Division II level whose fastball never touches 90; great college power hitters who hit 20 home runs with aluminum bats whose power will not translate with the less forgiving wooden bats used in the pros. On the other hand, the wild, hard-throwing lefty who walks ten a game or the raw-boned, 6'4" 240 pound first-baseman from North Dakota who crushes the ball but strikes out every other at bat are the treasures, whose upside is limitless and flaws are fixable. The Super Market Scout hopes that his competition focuses on the "noise"– the gyrations, the trumped up economic activity and bail-outs et al that all of the amateurs focus on. Like the Bird Dog Scout, he will quietly look beyond the numbers, where the true value lies.


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