Monday Markets are Meaty, Beaty, Big and Bouncy!
by phil - August 11th, 2014 8:22 am
"Thruppence and sixpence every day
Just to drive to my babyI don't care how much I pay (Too much, Magic Bus)
I wanna drive my bus to my baby each day (Too much, Magic Bus)I don't want to cause no fuss (Too much, Magic Bus)
But can I buy your Magic Bus? (Too much, Magic Bus) " – The Who
This is certainly one Magic Bus of a market, flipping on a dime or, more accurately, bouncing off the Dow's 200 day moving average at 16,350 back towards our predicted strong bounce line at 16,650. The Transports are also bouncing right off the 100 dma at 142, down from 152 and. per our 5% Rule™, we expect 146 to be tested this morning. This is not "surprising", this is what we said would happen on Friday morning.
As we discussed all of last week, BALANCE is the key in a choppy market and our Long-Term Portfolio finished Friday at $590K, up exactly 18% for the year, while our Short-Term Portfolio jumped to $136,000, up 36% for the year and together they are $726,000, up over 20% for the year on our two primary virtual portfolios.
Having well-balanced portfolios allowed us to ride out the dip and, in fact, buy more longs while the market was pulling back, rather than panicking out of positions that, for the most part, only went down with the market – rather than because there was any actual weakness in the stock.
Our general strategy of Being the House – Not the Gambler is also a great help in consistently making progress in our portfolios, even when the market has such a choppy week.
For most traders, it's "thruppence and sixpence every day" just to hold on to their positions as they gyrate up and down. As sellers of premium, we own the Magic Bus and we collect those daily pennies instead of selling them and that acts as a tremendous buffer to our long-term investing, where simply hanging on to a position allows us to collect another day's rent!
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How to Turn $25,000 into $500,000 in 15 Years
by phil - May 17th, 2014 8:33 am
Would you like a 20x return on your investments?
In our Weekly Webcast on Tuesday (replay available here), we discussed various ways you can make a nice retirement nest-egg for yourself as well as various stock and option strategies (and 9 new trade ideas to go with them) that can put you on the road to becomming a millionaire.
Unfortunately, none of these are "instant" – these are not lottery tickets but long-term, time-tested strategies that can give you everything you ever dreamed of – IF you are willing to work for it.
These same strategies can also be applied to generate an income off your retirement savings without digging back into your principal each year.
We don't sell magic beans at Philstockworld, we teach our Members HOW to invest and put them on the road to wealth but it requires hard work and dedication on your part. If you are willing to make the effort, though, we are happy to show you how to make the climb.
In the Webinar, we discussed turning $100,000 into $1M, $2M and $5M over various periods of time but we neglected to talk about strategies for people starting our with smaller amounts, say $25,000 to start. We do run a virtual $25,000 Portfolio for our Members – to identify simple trades that require no margin and no day-trading (you really can't day-trade with $25,000 and, most likely, you have a job to do during the day anyway!) yet are still able to generate nice returns.
Before we start, I want to get you comfortable with the math involved. Money Chimp has a very nice Compound Interest Calculator which I'm using for my calculations and on the left is the model for the base premise of this article. Follow the link and play with it so you can see how different strategies affect your Future Value.
For instance, notice I'm going to tell you to add $2,000 a year to your account. That gets you to $558,000 after 15 years. What if you don't add $2,000 a year to your account? Then you…
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Just Another Manic Monday
by phil - May 12th, 2014 8:29 am
All-time highs on the Dow.
That's all that really seem to matter in the Global markets as we shake off terrible Japanese trade numbers, which was somewhat counterbalanced by China's plan to open up its capital markets – by 2020.
It's never too early to start celebrating, I suppose but should we be celebrating at all when the Nasdaq and the Russell are DOWN more than 5% for the year?
There are 2,000 stocks in the Russell and 3,000 stocks in the Nasdaq Compositie index vs. 30 stocks in the Dow and 500 in the S&P. As pointed out by Business Insider, even on the Dow, the AVERAGE stock is down 5% and within the S&P, 8% the average stock id DOWN 8% while the Nasdaq and Russell (10 times more stocks!) are clearly in bear market territory – down over 20% from their highs.
While investors may not have learned anything from the last crash, the Banksters have learned that you can manipulate just a few key, heavily-weighted stocks in order to make an entire index seem to be performing better than the sum of its parts. This allows the IBanks to dump their shares into ETF suckers, who are forced to buy the crap they are selling (at the day's closing price) as long as they can game the overall index to LOOK like it is doing well.
That's why we see thise constant "stick saves" into almost every close. Half the day's volume is done after the bell at what they call "market on close" orders that are automatically generated by ETFs and IRA drips, which forces the retail suckers with IRAs and 401Ks to buy at Top Dollar – no matter how relentless the selling volume was during the actual trading session.
Don't be shocked, that's why the Banksters designed IRAs and 401Ks and ETFs in the first place! Really, did you think they were doing it for your benefit? On the whole, the stock market is nothing more than a Three Card Monte Game, where pretty much everyone…
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Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...
Ilene is editor and affiliate program
coordinator for PSW. She manages the site