Cruelest tax of all...
If prices of real estate rise, what does that mean for the price of the dollar? At one time the price of a tank full of gasoline was two dollars. Now it is fifty dollars. A gallon is still a gallon, but a dollar is not still a dollar. What is called taxes for the rich are passed along to the end of the line. There they call it inflation. But hi dee hi ho, it is not called a tax.
"I don't buy stories, I buy shares. Instead I follow the buy/sell money decisions painted on the charts. For all sellers there must be a buyer. Also, I follow Uncle Joe Granville's on- balance-volume, and the closing stock price oscillators, all seen in candlestick patterns.
Simple point and figure charts are also very good because they easily highlight price changes. Here again, I follow the trend since prices linger in the trend longer than they do in the change of the trend.
Finally, I manage my cash strategy to suit my personal risk reward goals in not more than five positions selected from blue chips in the Dow Jones, or those with favorable dividend histories.
If I Bought, then I am a Seller
Buy uptrends. Be wary of carefully selected growth stocks by someone else and absolutely avoid bottom fishing. Be a buyer, remember stocks should be bought by you, not sold to you."
Market seems to be in some sort of skittish distribution. That is, stock is changing hands, but neither buyers or sellers are getting the upper hand right now.
I sympathize with the buyers since I am no longer a growth position player, but there is a good case for the sellers as well. This scenario comes about because markets generally look six months out, or an equivalent. Optimism in the face of uncertainty is hard but over the long run optimism has won out.
There cannot be a seller unless there is a buyer. The markets are protected by the unwritten rule saying that no one can corner the market because the game must go on. If there is a winner, he will be taken out by any rule required, new or old, to keep the game operating. Jesse Livermore cornered the coffee market and the Hunts cornered the silver market, so they both lost by one rule or the other. That's my story.
Risk and Reward Hope Ratios
It is generally accepted in all quarters that optimism is the one best underlying quality leading to successful strategies when competing with hope and risk in the markets.
Once Charts were Considered Craziness by Many
Then Computers Released Them
Charts' are cool but the tape is hot. It is hot because it is moving, even when prices are identical. It is instinctive, we watch anything that moves even as do all organisms.
There is nothing like a chart to bring everything into perspective. A good chart will show where price congestion is, the support and résistance areas.
The best charts are candlestick charts, used in Japan more than 500 years now. They show the opening and closing as well as the high and low price and whether it was up or down at the close and the open. Shown is a Stockcharts.com chart of Apple. These are the best charts I've ever used.
Charts developed, from my understanding, in the U.S. are called point and figure charts. The Xs are up prices and Os are down prices but only if they have made at least a three point change. P&Fs are also good, like candles, showing congestion and support/resistance areas.
The worst thing one can do, in my mind, is to use decimals as in dollars, instead of charts. Fractions are best and are being brought back I've been told. The reason fractions are best is that they take the awareness of money (meaning fear and greed) out of price movements.
