Stop banging your head against a wall…
…And buy ’til it hurts. That was my motto the last two weeks even as I watched unprecedented buying and technical levels screamed overbought . I outspokenly got short this rocket ship around 925 in the S&P, and I made one of the toughest decisions you have to make in this business once we surpassed 960. I took my losses and I flipped my view and got long. One of the tough psychological factors when you’re in this business is that sometimes after being so wrong and watching your trades go against you for days, weeks, even months, it can feel worse to get out of your positions and then watch them work, versus sticking around and losing more money. It sounds like twisted logic but take my word for it. Although I was right, I still didn’t really believe in it, and I still don’t. Continue Reading »
Recession over? Don’t look at the stock market for the answer
If you happen to watch this stock market and pay attention to earnings you might be inclined to declare the recession over. Even though Italy just declared theirs officially over, I wouldn’t be looking at the six day rocket ship under the ass of the stock market to say things are totally back on track. Continue Reading »
Happy America day: Earnings are around the corner
To most of us its known as the Fourth of July. If you have ever traveled to or met someone from another part of the world. they have likely called it “America Day,” and to be honest, I prefer the latter. Regardless of race, gender or religious affiliation, its one of the few holidays everyone in the country observes and hopefully appreciates, and I think it ought to have a more appropriate, prideful nickname.
I’m on the train headed to Boston for the weekend and I thought I’d throw in some thoughts on the past week and a look ahead to the most pivotal time for the market. Continue Reading »
Unfashionably late as usual
Call it beginners luck, but not only have markets sold off since my inaugural post here at Average Joe L-E, but now the White House agrees that unemployment will climb into double digits. Earlier this year Mr Prez and his crew predicted unemployment would peak around 8%. Nice. Those guys have always been a little slow, haven’t they? Speaking of slow, the World Bank today cut its global forecast, citing a 2.9% contraction coming…whatever that means. It’s been pretty humorous over the last 12 months watching these upgrade/downgrade headlines come out so un-fashionably late.
In (un)related news, anyone ever notice how big Timothy Geithner’s head is? (Image only slightly modified). “It” reminds me of Dan Aykroyd in Coneheads, but worse. Aykroyd was an alien, and TG is secretary of the treasury. Anyway… Continue Reading »
Bando Bucks: “Less Bad” economy
Hello to all of you from 50 Broad Street in New York City, and welcome to the newest segment of the Average Joe L-E Blog, Bando Bucks. I’m a twenty-something Wall Street trader and just so happened to start my career as the worst recession in 50 years began. I’ll be chiming in every now and again with a young professional’s perspective on our new financial landscape, economy and trading to complement Joe’s blog. You’ll come to learn that I have many opinions on the stock market and the economy. Trading is a hobby of mine that I enjoy, but it’s also what I do for a living. You can say I’m like any young guy trying to make it in finance…but with 25% of a normal base salary. How I make my living is almost entirely based on trading performance, so I do my homework and take my trading seriously. I’m in this career because of its unlimited upside…sitting in a small room with a few millionaires under 35 doesn’t hurt my motivation either. Continue Reading »
Lazy hiatus
When you live in New Jersey and the shore is so close and your friends have houses there, you can’t really avoid a few good weekends over the summer. But after being surrounded by guidos for a weekend, I’m glad to be back. (Some people are really offended by the stereotype, evidently). Time to step up the summer and get more done on this site.
Part of the things that you will see is MORE WRITERS! We’ll be adding insider financial analysis from a friend of mine, who will be (probably) known as Bando Bucks. He’s got some great insights and even a few good conspiracy theories up his sleeve, which is some every blog needs. (Don’t worry, mine are coming too).
More updates to come.
