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September, 2016 Archives

Richard's Wisdom On Psychology of the Crowd

Mary Anne and Pamela Aden's Comments

 

As long-term subscribers know, Richard often quoted the greats in this business. His favorites were William Hamilton, Robert Rhea and E. George Schaefer.

 

Each of these analysts added something to, and developed the Dow Theory. They were Richard's mentors and he followed their work closely. In fact, Richard took over Schaefer's work and built on it, all of which has improved Dow Theory for more than 100 years.

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Recon in Japan, On High Alert Globally

By Benjamin J. Butler

 

Tokyo

 

Japan and the World

 

Readers will know that I favor seeing the whole through the parts, a phenomenon that I call holographic finance. On my trip to Japan I look at both what is happening on the ground and also what light it spills on global events.

 

I have always respected Japan for its ancient culture, good tastes and immense list of culinary delights. But architecturally, I found Tokyo a bit of an eyesore, compared to the beauty of the temples of Kyoto. When I used to live in Tokyo I would always endeavor to find homes near parks, and towards the end, when I had a bit more financial firepower, I had a nice apartment overlooking the Imperial Palace.

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Daily Recap

Stocks were generally higher today, a result of no surprises from Fed chief Yellen's comments, but more so based on a jump in oil prices. Oil rose a healthy $2.20, or 5% on hopes of an OPEC limit on production.

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Faith and Patience

by Jon S. Strebler

 

Back in the time of Cotton Mather and the Salem witch trials, Faith and Patience were common names for females, reflective of that time’s heavy focus on virtue. The country has come a long way since the 1600s, and virtue is still important, but not so much and in ways that the Puritans would have found profoundly shocking. Still, those two names describe virtues or at least goals that are important for successful long-term investing.

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Watch This Key Level

By Matthew Kerkhoff

 

Groupthink can be a dangerous phenomenon in the financial markets, but it can also provide an advantage in some circumstances. If we know what key price levels other traders are watching, and how they’re likely to react if and when those levels are reached, then we can plan accordingly.

 

Right now a lot of attention is being paid to a certain level in the S&P 500 that marks an alignment of various technical indicators. That level? 2118.

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Richard's Thoughts on Optimism

Richard’s Comments

 

HOPE:  It's human nature to be optimistic. It's human nature to hope. Furthermore, hope is a component of a healthy state of mind.

 

Hope is the opposite of negativity. Negativity in life can lead to anger, disappointment and depression. After all, if the world is a negative place, what's the point of living in it? To be negative is to be anti-life.

 

Ironically, it doesn't work that way in the stock market.

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