Post by Admin on Aug 11, 2004 1:25:08 GMT -5
Good Evening,
Quite the day, hey?
And I quote - The Fed raised the fed funds rate target 1/4% to 1 1/2%...the move, announced at 2:15 ET, was fully expected and had little impact on the day's action...stock indices opened higher, trended higher through early afternoon, and improved even more after the Fed announcement, closing at their highs of the day
All righty then. So were out of the woods, huh? Smooth sailing and all that, right?
If you asked me if I thought we were going to get some rain, I would have the same answer - "Sooner or later". Like I keep saying, the economy is not that bad. It could be the best we've ever had, but I don't think the Fed or the markets are ready to recognize it, not just yet. Traders finally had a reason to trade today, Greenspan. He stuck to the script and the trading increased.
All day head fake? Bear trap for those caught short? I'm as bullish as they come, but I didn't buy today's rally. After the bell Cisco reported that profits surged 41 percent last quarter, yet the stock fell 8% in after hours trading, taking a number of stocks with it. So who set this stage? All the props are in the wrong place. A 41% increase says "good economy", an 8% drop in share price within a few hours of that news says, "we don't believe it".
Imagine a scenario where things begin to look really dark before the upcoming election. Suddenly jobs soar, the Fed surprises, oil prices drop and Mr. Bush is making his acceptance speech in tights and a cape. I'm not accusing the President of manipulating the economy, he's too busy running the country. Other people, however, could have slightly different agendas.
As was mentioned on the board today by an astute member, until summer plays out, and we're back to trading at full volume, expect more of the same.
Last night we talked about advances and declines for the first time on the board. I questioned myself as I typed, why was I choosing to highlight a less than stellar performance day? It must have been a God thing, keeping me humble. Humble is good. Verily, verily good. God said so. What I posted last night, makes what I'm about to share easier to do. I don't want to be accused of thumping my chest on good days and hiding in the closet when I'm wrong.
The CT Index put in a sterling performance today with 199 advances and only 58 declines. Many positions ran multiple dollars and if you were ready, as I cautioned you to be, you felt the wind at your back, pocketed some serious gains, adjusted your stops going into the close, and will rest peacefully tonight. If the rally continues for a day, more profits
If not, your positions are protected. Right?
Tomorrow I will be introducing a new column and columnist to help you hone your basic trading skills, understand technical signals, and he will even delve into some of the more exotic, esoteric subjects such as the life and numbers of Fibonacci. God continues to mold and shape Christian Traders, bringing every resource on-line, just as it's needed. If you have specific trading questions, he will address those in his column, and I an hoping his schedule will permit real-time training in the chat room for both newcomers and veterans alike. Here's a quote from him regarding Technical Analysis, which will give you a good idea of what you can expect.
"I think it actually can show us glimpses of God’s divine order in the universe. Things like Fibonacci ratios, I believe, reveal the Creator’s handi-work throughout nature. I think it does the same thing in the financial markets as well. Sometimes, when I am really in the zone, I can almost see the bars appear on the chart before they actually show up. It’s like seeing just over the edge of the horizon. When that happens, I feel closer to God than at just about any other time. It’s not that I am so smart. It’s that God’s creative hand is revealed, or at least a glimpse of it. It is very, very powerful."
Yeah! ;D That's what I said.
I'm exited for all of us. God is Good! We are Blessed!
I wish I could be as certain of trading tomorrow >
+ MEE CME MDPA AEOS BMHC
- ADVR
I threw in ADVR only because we have a lot of traders who enjoy the pennies, and I just want you to understand you can make it both ways. This is a bold call considering it doesn't have far to fall, but the volume is supportive of an easy 20-30% gain.
Whether the markets are up or down, somebody makes money every day. Go ahead, be somebody!
And don't forget to write and send money when you're rich and famous. That's the deal we made right?
As always, Trade Safe!
_________________________________________________________________
Between the Lines
I'll close tonight with a quote from economist Robert Heilbroner, in reference to what a typical American family would have to give up if they were living among the one billion hungry people in Third World countries and then go have a piece of cheesecake.
"We begin by invading the house of our imaginary American family to strip it of its furniture. Everything goes: beds, chairs, tables, television sets, lamps. We will leave the family with a few old blankets, a kitchen table, a wooden chair. Along with the bureaus go the clothes. Each member of the family may keep in his 'wardrobe' his oldest suit or dress, a shirt or blouse. We will permit a pair of shoes for the head of the family, but none for the wife or children.
We move to the kitchen. The appliances have already been taken out, so we turn to the cupboards ... The box of matches may stay, a small bag of flour, some sugar and salt. A few moldy potatoes, already in the garbage can, must be rescued, for they will provide much of tonight's meal. We will leave a handful of onions and a dish of dried beans. All the rest we take away: the meat, the fresh vegetables, the canned goods, the crackers, the candy.
Now we have stripped the house: The bathroom has been dismantled, the running water shut off, the electric wires taken out. Next we take away the house. The family can move to the tool shed ....Communications must go next.
No more newspapers, magazines, books--not that they are missed, since we must take away our family's literacy as well. Instead, in our shantytown we will allow one radio.
Now government services must go next. No more postmen, no more firemen. There is a school, but it is three miles away and consists of two classrooms... There are, of course, no hospitals or doctors nearby. The nearest clinic is ten miles away and is tended by a midwife. It can be reached by a bicycle, provided the family has a bicycle, which is unlikely...
Finally, there is money. We will allow our family a cash hoard of five dollars. This will prevent our breadwinner from experiencing the tragedy of an Iranian peasant who went blind because he could not raise the $3.94 which he mistakenly thought he needed in order to receive admission to a hospital where he could have been cured."
Sometimes I too get caught up in what the "world" has to offer, and I forget just how blessed I am, especially in the very simple things I take for granted each day. God is so faithful in His word to remind us that real "riches" have little to do with our "stuff."
I pray that God helps me to have a right perspective about things, and that He would keep my mind focused on Him.
Maybe I'll skip the cheesecake
Charge them that are rich in this world, that they be not high-minded, nor trust in uncertain riches, but in the living God, who giveth us richly all things to enjoy. That they do good, that they be rich in good works, ready to distribute, willing to communicate, laying up in store for themselves a good foundation against the time to come, that they may lay hold on eternal life.
1 Timothy 6:17-19
Quite the day, hey?
And I quote - The Fed raised the fed funds rate target 1/4% to 1 1/2%...the move, announced at 2:15 ET, was fully expected and had little impact on the day's action...stock indices opened higher, trended higher through early afternoon, and improved even more after the Fed announcement, closing at their highs of the day
All righty then. So were out of the woods, huh? Smooth sailing and all that, right?
If you asked me if I thought we were going to get some rain, I would have the same answer - "Sooner or later". Like I keep saying, the economy is not that bad. It could be the best we've ever had, but I don't think the Fed or the markets are ready to recognize it, not just yet. Traders finally had a reason to trade today, Greenspan. He stuck to the script and the trading increased.
All day head fake? Bear trap for those caught short? I'm as bullish as they come, but I didn't buy today's rally. After the bell Cisco reported that profits surged 41 percent last quarter, yet the stock fell 8% in after hours trading, taking a number of stocks with it. So who set this stage? All the props are in the wrong place. A 41% increase says "good economy", an 8% drop in share price within a few hours of that news says, "we don't believe it".
Imagine a scenario where things begin to look really dark before the upcoming election. Suddenly jobs soar, the Fed surprises, oil prices drop and Mr. Bush is making his acceptance speech in tights and a cape. I'm not accusing the President of manipulating the economy, he's too busy running the country. Other people, however, could have slightly different agendas.
As was mentioned on the board today by an astute member, until summer plays out, and we're back to trading at full volume, expect more of the same.
Last night we talked about advances and declines for the first time on the board. I questioned myself as I typed, why was I choosing to highlight a less than stellar performance day? It must have been a God thing, keeping me humble. Humble is good. Verily, verily good. God said so. What I posted last night, makes what I'm about to share easier to do. I don't want to be accused of thumping my chest on good days and hiding in the closet when I'm wrong.
The CT Index put in a sterling performance today with 199 advances and only 58 declines. Many positions ran multiple dollars and if you were ready, as I cautioned you to be, you felt the wind at your back, pocketed some serious gains, adjusted your stops going into the close, and will rest peacefully tonight. If the rally continues for a day, more profits
If not, your positions are protected. Right?Tomorrow I will be introducing a new column and columnist to help you hone your basic trading skills, understand technical signals, and he will even delve into some of the more exotic, esoteric subjects such as the life and numbers of Fibonacci. God continues to mold and shape Christian Traders, bringing every resource on-line, just as it's needed. If you have specific trading questions, he will address those in his column, and I an hoping his schedule will permit real-time training in the chat room for both newcomers and veterans alike. Here's a quote from him regarding Technical Analysis, which will give you a good idea of what you can expect.
"I think it actually can show us glimpses of God’s divine order in the universe. Things like Fibonacci ratios, I believe, reveal the Creator’s handi-work throughout nature. I think it does the same thing in the financial markets as well. Sometimes, when I am really in the zone, I can almost see the bars appear on the chart before they actually show up. It’s like seeing just over the edge of the horizon. When that happens, I feel closer to God than at just about any other time. It’s not that I am so smart. It’s that God’s creative hand is revealed, or at least a glimpse of it. It is very, very powerful."
Yeah! ;D That's what I said.
I'm exited for all of us.
God is Good! We are Blessed!I wish I could be as certain of trading tomorrow >
+ MEE CME MDPA AEOS BMHC
- ADVR
I threw in ADVR only because we have a lot of traders who enjoy the pennies, and I just want you to understand you can make it both ways. This is a bold call considering it doesn't have far to fall, but the volume is supportive of an easy 20-30% gain.
Whether the markets are up or down, somebody makes money every day. Go ahead, be somebody!
And don't forget to write and send money when you're rich and famous. That's the deal we made right?
As always, Trade Safe!
_________________________________________________________________
Between the Lines
I'll close tonight with a quote from economist Robert Heilbroner, in reference to what a typical American family would have to give up if they were living among the one billion hungry people in Third World countries and then go have a piece of cheesecake.
"We begin by invading the house of our imaginary American family to strip it of its furniture. Everything goes: beds, chairs, tables, television sets, lamps. We will leave the family with a few old blankets, a kitchen table, a wooden chair. Along with the bureaus go the clothes. Each member of the family may keep in his 'wardrobe' his oldest suit or dress, a shirt or blouse. We will permit a pair of shoes for the head of the family, but none for the wife or children.
We move to the kitchen. The appliances have already been taken out, so we turn to the cupboards ... The box of matches may stay, a small bag of flour, some sugar and salt. A few moldy potatoes, already in the garbage can, must be rescued, for they will provide much of tonight's meal. We will leave a handful of onions and a dish of dried beans. All the rest we take away: the meat, the fresh vegetables, the canned goods, the crackers, the candy.
Now we have stripped the house: The bathroom has been dismantled, the running water shut off, the electric wires taken out. Next we take away the house. The family can move to the tool shed ....Communications must go next.
No more newspapers, magazines, books--not that they are missed, since we must take away our family's literacy as well. Instead, in our shantytown we will allow one radio.
Now government services must go next. No more postmen, no more firemen. There is a school, but it is three miles away and consists of two classrooms... There are, of course, no hospitals or doctors nearby. The nearest clinic is ten miles away and is tended by a midwife. It can be reached by a bicycle, provided the family has a bicycle, which is unlikely...
Finally, there is money. We will allow our family a cash hoard of five dollars. This will prevent our breadwinner from experiencing the tragedy of an Iranian peasant who went blind because he could not raise the $3.94 which he mistakenly thought he needed in order to receive admission to a hospital where he could have been cured."
Sometimes I too get caught up in what the "world" has to offer, and I forget just how blessed I am, especially in the very simple things I take for granted each day. God is so faithful in His word to remind us that real "riches" have little to do with our "stuff."
I pray that God helps me to have a right perspective about things, and that He would keep my mind focused on Him.
Maybe I'll skip the cheesecake
Charge them that are rich in this world, that they be not high-minded, nor trust in uncertain riches, but in the living God, who giveth us richly all things to enjoy. That they do good, that they be rich in good works, ready to distribute, willing to communicate, laying up in store for themselves a good foundation against the time to come, that they may lay hold on eternal life.
1 Timothy 6:17-19