Global Capital. Clear Intelligence.
Regarding Stock Market Capitulation Q: I see that Tesla Motors was down to $148 yesterday (written on Feb 9.) from $211 on January 8, 2016 when you placed it on your short list. That comes out to a 60% rate of return on a retail margin for short selling of 50% in less than a … Read more
Why, in Applying the Fixed System, Does Subjective Value Win over Government Intervention? A market price refers to what a willing buyer and a willing seller will contractually agree. To the extent that force or fraud exists, as it does with all government intervention, the transaction is not willing and therefore does not reflect a … Read more
The Fixed System Short List TSLA closed February 2, 2016 at $182.78, a drop of $28.22 in just eighteen days. That’s a profit of 26% if your broker requires a 50% retail margin on a short sale, and better than double if you’re trading options, in this case put options. For a portfolio manager, the … Read more
Q: I see that TSLA closed at 173.48 yesterday. That is down substantially from your short at 211 on January 15, 2016. Care to give us an update on your thinking? A: The chartist would point out that it is now clearly under a two-year distribution top pattern. To their way of thinking that pattern … Read more
Yes, absolutely the Fixed System be used in short selling. It does not matter which direction the market is moving as long as it’s moving vigorously. The Fixed System incorporates all the successful concepts and procedures Jesse Livermore used in the 1929 crash to make a hundred million USD shorting shares on the NY Stock Exchange. … Read more
Is it the search for the Holy Grail, the fountain of youth, and El Dorado? Is it the quest to turn base metals into gold? Is it a dream and an illusion? At times, I felt like I was sleepwalking. But it was real. I traded on leverage, pyramided futures and stock options, and turned … Read more
Q: What is the Fixed System? A: The Fixed System is the application of economic law in a manner consistent with the scientific method to profit from price changes. Q: What do you mean by scientific method? A: Using observation to establish facts and then logic to reach useful conclusions that follow from the factually … Read more
Q: What are your standards for placing a share on your short sell list, and does this in any way relate to your calling the low in the gold market? A: Good questions. There is an inverse relationship between gold and story stock like Tesla Motors (symbol TSLA). Also, when you’re long gold, you are … Read more
This is the most difficult of the many challenges a speculator or investor faces. If you think that you are not affected, think again. Your head is in the sand. The buy and hold for the long term does not insulate you from the effects of the cyclical nature of markets. It only camouflages the … Read more