Archive for October, 2011


Game Plan for tomorrow

Tomorrow, If stock go up, that mean today’s action is a pull back. Enter the following action

If it go down, it could mean short the market.

I am looking into REDF today. Seeing it at 10%. Well, sit around. By the time it close, it is up 45%. I want to puked. But no chasing here. I didn’t lose. Just keeping the profit.

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Back in 2010, I get about 5-10% return from DPZ.
They have a new initiative and significantly improve their quality of their food.

Well, I guess now they have another new strategy which will definitely “eliminate” their competition. Some local managers decided to burn down their competitors.

There are 2 problem with this strategy plan
1. It is not long term sustainable.
2. Government will quickly step in -well, because of anti-trust law ūüėÄ

The Top 50

9.9 How to Make Money in Stocks by William O’Neil
9.9 How to Make Money Selling Stocks Short by William O’Neil and Gil Morales
9.9 Trend Following by Michael Covel
9.8 The Battle for Investment Survival by Gerald Loeb 1935
9.8 Reminiscences of a Stock Operator by Edwin LeF`evre 1923
9.7 Lessons from the Greatest Stock Traders of All Time by John Boik
9.7 The Best: Tradingmarkets.com Conversations with Top Traders by Kevin Marder
9.7 The New Market Wizards by Jack Schwager
9.7 Market Wizards by Jack Schwager
9.7 Bulls Bears & Millionaires by Robert Koppel
9.7 The Mind of a Trader by Alpesh B. Patel
9.7 How to Trade in Stocks by Jesse Livermore 1940
9.7 The Winning Edge by Jake Bernstein and Nancy Toghraie
9.6 Zen in the Markets by Edward Allen Toppel
9.6 Stock Market Logic by Norman Fosback
9.5 The Art of Contrary Thinking by Humphrey B. Neill 1954
9.5 Wall Street Ventures and Adventures by Richard Wyckoff 1930
9.5 The Wall Street Waltz by Kenneth Fisher
9.5 The Momentum-Gap Method by Robert Cable
9.5 How I Made $2,000,000 in the Stock Market by Nicholas Darvas 1960
9.5 Money Talks by Robert Koppel
9.5 The Roaring 2000’s by Harry Dent, Jr.
9 Tape Reading and Market Timing by Humphrey B. Neill 1931
9 Only Yesterday‚ÄďAn Informal History of the 1920‚Äôs¬†by Frederick Allen¬†1931
9 Liar’s Poker by Michael Lewis
9 The Amazing Life of Jesse Livermore by Richard Smitten
9 Jesse Livermore Speculator King by Paul Sarnoff
9 How to Be a Billionaire by Martin Fridson
9 1-Way Pockets: The Book of Books on Wall St. Speculation by Don Guyon 1917
9 Twenty-Eight Years in Wall Street by Henry Clews 1888
9 Secrets of the Investment All-Stars by Kenneth Stern
8.8 Causes of the 1929 Stock Market Crash by Harold Biermann, Jr.
8 Trader Vic‚ÄĒMethods of a Wall Street Master¬†by Victor Sperandeo
8 Trader Vic II‚ÄĒPrinciples of Professional Speculation¬†by Victor Sperandeo
8 Winning on Wall Street by Martin Zweig
8 Trading for a Living by Dr. Alexander Elder (with study guide)
8 The Ups and Downs of a Wall St. Trader during the Depths of the Great Depression of the 1930’s by David Feldman
8 Statistical Reasoning by Gary Smith
8 Wall Street: A Pictorial History by Leonard Levinson
8 Oh Yeah? By Edward Angly 1931
8 Market Timing for the 90’s by Stephen Leeb
8 Intermarket Technical Analysis by John Murphy
8 Extraordinary Popular Delusions & The Madness of Crowds by Charles Mackay 1841
8 Encyclopedia of Technical Market Indicators by Robert Colby & Tom Meyers
8 The New Money Masters by John Train
7 The Technical Analysis Course by Thomas Meyers
7 The Tao Jones Averages by Bennett Goodspeed
7 The Money Culture by Michael Lewis
7 The Hulbert Guide to Financial Newsletters by Mark Hulbert

 

Best of the Rest

7 The Education of a Speculator by Victor Niederhoffer (imploded October 1997)
7 Secrets of Profiting in Bull & Bear Markets by Stan Weinstein
7 One Up on Wall Street by Peter Lynch
7 Investments (Text used in MBA Investments 233 course at UC Berkeley)
7 Inside Wall Street¬†1920‚Äď1942¬†by S. Marshall Kemper
7 Dun & Bradstreet’s Guide To Your Investments 1991 by Nancy Dunnan
7 Confusion de Confusiones by Joseph de La Vega 1800’s
7 Confessions of a Stock Broker by Andrew Lanyi
7 Classics II by Charles D. Ellis
7 Bernard Baruch: My Own Story by Bernard Baruch
7 What Works on Wall Street by James O’Shaunessy
7 The Super Traders by Alan Rubenfeld
7 The Nature of Risk by Justin Mamis
6 The Mathematics of Money Management by Ralph Vince
6 Men and Mysteries of Wall Street by James Medbery 1878
6 Market Movers by Nancy Dunnan and Jay Pack
6 Economics by Paul Samuelson and William Nordhaus (text)
5 The New Technical Trader by Tushar Chande and Stanley Kroll
5 The Merchant Bankers by Joseph Wechsberg
5 The Five-Day Momentum Method by Jeff Cooper
5 The New Stock Market by Diana Harrington, Frank Fabozzi, and H. Russell Fogler
5 How to Buy Stocks, 7th edition by Louis Engel and Brendan Boyd
5 Handbook of Financial Markets by Frank Fabozzi
5 The Corporate Alchemists by Lee Davis
5 Portfolio Management Formulas by Ralph Vince (Wiley)
5 Hit & Run Trading by Jeff Cooper

 

Top Non-Investment Related Books

The Power of Now by Eckhart Tolle
A New Earth by Eckhart Tolle
The Science of Getting Rich by Wallace D. Wattles
Ask and It Is Given by Esther Hicks
The Law of Attraction by Esther Hicks
Chicken Soup for the Soul by Jack Canfield
Sacred Hoops by Phil Jackson
Narrative of the Life of Frederick Douglas
The World As I See It by Albert Einstein
Wooden by John Wooden
Autobiography by Benjamin Franklin
Right Reason by William F. Buckley, Jr.
The Art of the Deal by Donald Trump
Leaders by Richard Nixon
Malcolm Forbes‚ÄĒThe Man Who Had Everything¬†by Christopher Winans
The Elements Beyond Uranium by Glenn Seaborg

Chris Evan have a great idea…. No, no, no, not¬†Captain¬†america.¬†Chris Evans is introducing the new Pharma model.

The new model ask big pharma give them pre-clinic drug candidates for Chris Evans company to take it through clinic. Advantage of that have 2 fold
1. Consolidation for cost saving
2. Better Knowledge Management – Learn from failure, no more hush hush between pharma!

 More consolidation is coming. If you are in Pharma R&D, fasten your seat belt because more lay off is coming. What NC pharma will do is to consolidate all the clinical trial study into one company. Hence, more efficiency and cast saving. Great concept, let hope it will work!

QE3…. There is no choice.

By my boy Terry. I agree with him. We are looking at a long term inflation risk. But until then, buy your houses.

We are living in the Currency war age.

It is the powerpoint presentation from the Bank of England. It is for convincing the British citizens to accept print extra 170 billions pounds this month.

If you go to dig out the swiss national bank (Central bank of swissland) M2 statistic, you will find that the bank print extra 82% money in order to control the swiss frank appreciation in Aug 2011.

The Euro leaders consider to print/inject extra 2 Trillions Eur to the EFSF fund pool this Sunday in order to bailout the banking system.

The above printing will force the USD to appreciate indirectly. The fed will not allow this and there will be another round QE in US soon.

It is going to have disaster inflation. Be prepared. Hold tight with your GOLD.


Last couple years, VC money have been taken away from BIOTECH because of Internet 2.0 bloom. But without a good barrier of entry, internet companies, like groupon.com, cannot be a good long term investment.

Depression in US/EU???

From my friend Terry Chan

This was happening during the great recession — 1930. A lot of professionals (Accountants, Bankers) were lining up outside a church and begged for foods. This may happen again in Euro/US. For the Stock market rebound last week, i would say, “Sorry, nothing has been resolved…” It looks like a technical rebound and the only reason for the rebound is “the market dropped too quick, NOT too much.”. That’s it.

The Euro Leaders are saving the dates, not the crises.

In fact, the total amount of PIIGS crises debt is EUR 5 Trillions and the Total reserve in Euro Zone is USD 0.8 Trillions. Even China is willing to spend all her USD 3 Trillions reserve to save the PIIGS, it is still far away from enough.

It is impossible to save the Greece. The only solution for the crises is let her to default. Yes, just let them default! Let those banks who lend the PIIGS money suffer the lose. It is extremely painful but it is the only way. Let them default and rebuild their countries. It is how financial system works.

A picture say it all…..