Category: Research
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Herd Behavior and Investing: The Solomon Asch Experiment
Herd mentality, as defined by Herbet Simon in the journal article The Concept of Herd Behavior: Its Psychological and Neural Underpinnings is , “An alignment of thoughts or behaviors of individuals in a group … such convergence emerges through local interactions among agents rather than some purposeful coordination by a central authority or leading figure…
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Monday Dirty Dozen [CHART PACK] #8
Politics is the art of looking for trouble, finding it everywhere, diagnosing it incorrectly, and applying the wrong remedies. ~ Groucho Marx In this week’s Dirty Dozen [CHART PACK] we look V-shaped, L-shaped, U-Shaped and other alphabetical themed paths for the recovery in growth. We then dive into more fiscal stimulus graphs, look at some…
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Mechanical Technologies (MKTY): $6M Company Secures $3.3M Purchase Order
MTI Instruments (MKTY) is a supplier of precision linear displacement solutions, vibration measurement and system balancing solutions, and wafer inspection tools. These tools and solutions are developed for markets that require the precise measurements and control of products processes for the development and implementation of automated manufacturing, assembly, and consistent operation of complex machinery. The company…
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The “No Sense” Algorithm
My buddy Chris D. likes to point out that a characteristic of a “Bull Quiet” regime is when the best sell setups fail time after time. That’s what we’re seeing now. The market is frustrating the bears by buying every dip grinding the market higher in its micro-bull channel with the 3,000 level and 200-day…
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More Letters From Your Favorite Investors #2
If you’re like me, you missed Berkshire Hathaway’s annual shareholders cult-gathering meeting. The weather was too nice and I’ve been cooped up inside my house too damn long not to enjoy the day. Instead of watching 3rd-grade level slide-shows, I played corn-hole.My buddy beat me 21-0 in the third game. I know, I need to…
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Monday Dirty Dozen [CHART PACK] #7
The joy of winning and the pain of losing are right up there with the pain of winning and the joy of losing. Also to consider are the joy and pain of not participating. The relative strengths of these feelings tend to increase with the distance of the trader from his commitment to being a…
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A Masterclass From Bernard Arnault’s Business Strategy
Bernard Arnault is the richest man alive. You wouldn’t know it since he shuns the spotlight. A recluse who got his start in engineering and construction but made his fortune through a collection of “high society” luxury consumer brands. A soft-spoken man with a history of brutal takeovers and scorched earth restructurings.In this piece, we’re…
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Using Put Options To Protect A Portfolio Of Stocks
*** The following is a guest post from Gavin McMaster founder of Options Trading IQ ***Markets took a beating recently due to the coronavirus outbreak and while they have recovered slightly, I thought it would be a good time to look at how to use put options to protect a portfolio of stocks.The S&P 500…
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More Letters From Your Favorite Investors
We hope you and your family are safe and healthy during this COVID-19 season. Many states are opening up their economies, neighborhoods and beaches in the coming weeks. Stay healthy, remain cautious and keep your head on a swivel.The markets etched higher since last week and the Russell 2000 broke out of a symmetrical triangle…
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Monday Dirty Dozen [CHART PACK] #6
People need to have a perceptual filter that matches the way they think. The appropriate perceptual filter for a trader has more to do with how well it fits a trader’s mental strategy, his mode of thinking and decision making, than how well it accounts for market activity. When a person gets to know any…