Courtesy of Read the Ticker.
With the massive FED meeting near, the herd are about to be moved.
Wall Street are brokers. They are commission agents.
They make money when you change positions in your account. They desire you to change direction of your account, they care not of the direction of the security.
Wall Street sell investing themes that encourage you to change you account, remember these:
– Technology is the new thing
– Bonds is the new thing
– Foreign assets is the new thing
– Emerging markets is the new thing
– China is the new thing
– Commodities is the new thing
Currently the herd is in: Short VIX, Long SP500, Short Bonds
Yes, they may be correct, but it is the frequency of the change which suits your Wall Street broker.
Consider this very accurate analogy.
The investing public are the sheep, the broker is sheep dog, the farmer is the back room strategist, and the paddock gate is the point of commission. Moving from one paddock to another is the change from one investing theme to another, and if the sheep do not move fast enough the sheep dog scares them enough to move. Yes this is Wall Street in its purest form!
The trick for the savvy investor is to pick (or be first, or contrarian investing ) the new paddock before Wall street herd the public into it, this allows you to enjoy the price rise from new buying. Of course Wall street knows which paddock to target. They never lose!
This is why you must never fall in love with your positions, all trends end, new ones are born, and do not be last in to the new trend.
From the movie Margin Call. All trends see the music stop.
This why Richard Wyckoff logic is the ideal education for the investor. Understanding accumulations and distributions within the ‘investing themes’ allows you to see where the informed money is moving to new positions or leaving old ones.
NOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net
Investing Quote…
…”When I couldn’t play according to my system, which was based on study and experience, I went in and gambled. I hoped to win, instead of knowing that I ought to win on form.”…
Jesse Livermore
..“Investing should be like watching paint dry or watching grass grow. If you want excitement…go to Las Vegas.”…
Paul Samuelson
..The time of maximum pessimism is the best time to buy and the time of maximum optimism is the best time to sell”..
John Templeton
…“To me, the ‘tape’ is the final arbiter of any investment decision. I have a cardinal rule: Never fight the tape!”…
Martin Zweig
…”The four most dangerous words in investing are ‘This time it’s different’ “…
John Templeton
