Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Five Things You Need to Know: The Majority, The Contrary, Seasonality, Demise of the Hummer, Pump Up the Volume

By should turn the volume on when Jeff Macke is being interviewed.


Editor's Note: While we congregate in Vail for Minyans in The Mountains 3, we asked each Professor to prepare some thoughts on fiscal literacy, how to listen to the market and their area of expertise.

1) The market tends to move against a majority at risk.

A majority opinion is not necessarily wrong – a contrary approach to investing must include the observation that price action is indeed moving against majority opinion.

Seasonality does not cause market moves, it simply reflects tendencies based upon prior price action.

Seasonality and sentiment are setup indicators.

A record short interest level is in itself as meaningless as observing that overall volume is at a record. Records of short interest relative to volume (short ratio) are meaningful.

Random Thoughts

  • The demise of the production of the Hummer1 could be a sign that the advance of oil is nearly complete.

  • Stocks remain in a secular bear cycle that began in 2000.

  • When watching CNBC, one should turn the volume on when Jeff Macke is being interviewed.
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos