Jan

14

Gurus have always found fertile ground in the financial markets. The early 20th century brought us esoteria like Gann and his geometric lines combined with astrology. It also supposedly brought common sense gurus like Livermore with his simple rules and pivot points. Later on in the century, even more bizarre market seers arose, and Joe Granville comes to mind. One of my earliest memories of the market is reading about Granville promoting his "Books of Granville" dressed as the Biblical Moses. In fact, my first hands on exposure to the market was after I met a financial astrologer while fishing back in 1990. He claimed to have called the crash of 1987 and profited wildly by buying way out of the money OEX puts with his college fund. He became obsessed with repeating this feat and astrology in general. I remember his purchase of J. Paul Getty's astrologer Evangeline Adams library containing all types of esoteric tomes. Needless to say, to the best of my knowledge, this story does not have a good ending.

Recently, I have noticed a proliferation of gurus trolling the internet for memberships in various chat room type websites or seminars. They are generally traders of stock index products like the mini SP500, the mini Dow contract and the Russell 2000 mini product. They all have some type of indicator, method, or system that will enable their subscribers to easily extract profits by just following along. Some claim to use logic, others write in such an obscure manner that just about anything can be read into their words. I have divided the Neo Gurus into three main types:

1. The plain talking regular Joe: This type claims to have been just like you, prior to finding the holy grail, which due to his altruistic nature will share with you for a small fee.

2. The Esoteric Intellectual: This type of guru was never like his followers existing on a higher plane. However, he is generous and is gladly sharing his knowledge for a stipend of what you will earn by joining his flock.

3. The Mystic: This type, although related to #2, is very different. He claims supernatural chart reading ability and general future reading skills.

My contention is that this recent proliferation of market gurus is an indication of a near short term top. The last of the public is being drawn in to lubricate the machine for a rapid descent. The only unknown is when.


Comments

Name

Email

Website

Speak your mind

Archives

Resources & Links

Search