Monthly Archives: November 2012

Olam and Muddy Waters

I pulled the last sentence from each paragraph of Muddy Water’s open letter to Olam, it makes for a nice mix of honest humor and corporate poetry.

To Olam CEO Sunny Verghese and the Board of Directors:

It has further evidenced a bizarre fixation on baseball caps.

We also note Olam’s attempts to impugn our credibility.

Your actions have been an abject failure of leadership.

Know this: You voluntarily came to the market, you subjected yourselves to its forces, and you must bear the consequences of your ineptitude.
….
Warmest Regards

I can’t help imagining Jon Stewart say “Bam” when I read the word ineptitude. If you’re interested in the full letter, it’s here.

TTMYGH – Grant Williams

I am consistently impressed with TTMYGH and his most recent, The Greatest, deserves to be shared. His conclusion is dead on.

I will leave you this week with a great observation from JPMorgan’s Kenneth Langdon, who had this to say about the coordinated interventions of central banks and politicians in the global economy:

“The net result of this partnership between fiscal and monetary authorities is a continuous drain of productive capital from the private sector into the non-productive public sector. Little of that capital will be put to productive use once in the hands of government bureaucrats. As a result of this decimation of capital formation in the private sector, growth will be permanently lower, which in turn creates a negative feedback for the collection of taxes. Major economies are literally being bled to death by this drain of capital from productive uses. Voters are sanctioning this economic suicide.”

Timing Solutions For Swing Traders

Timing Solutions For Swing TradersWiley Trading has the best trading books I’ve found. Timing Solutions for Swing Traders: A Novel Approach to Successful Trading Using Technical Analysis and Financial Astrology is no exception.

The curious thing about this book is “Financial Astrology”, for me it was a first and caught my attention. What is financial astrology? According to Robert Lee and Peter Tryde, “Financial Astrology is an analysis of financial matters based on the observation of planetary movements.” Fair enough, here’s a site the book references and gives you an idea of why lunar cycles might impact turning points in the S&P. The authors suggest harmony with the planets is important. I can’t disagree, yet… Well, ok but I have enough on my plate. Luckily they don’t overdo lunar, solar, zodiak, or planetary cycles; it only adds color to an otherwise excellent technical discussion, and if you’re open to the arguments they make, a fascinating potential indicator.

Essential Patterns, Elliott Waves, Volume, and Key Indicators make up the proportion of the book with excellent examples, the charts are in color which I appreciate, but they’re a bit small. Hong Kong is their market of preference.

This book is worth keeping handy if you like to dig into Elliott Waves, decipher trend with common indicators, and refresh your pattern recognition.

* I’ve stumbled on a planetary cycle discussion board, if you’re interested. (here)

Calvin And Hobbes

The Aftermath

Four years ago, during the elections, I was wandering around NY. I’d voted before I left Paris, it seemed important at the time. NY hadn’t changed. Marathon preparations were under way, and my only objective was to appreciate some of NYs energy, share that with my daughter, and do some shopping. All you really need in NY are good friends, street vendors, Bacon Egg and Cheese Bagels (yes, in capitals…), Snapple, Starbucks, and a good burger in the village. Continue reading