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Gasparino Says Goldman Settlement Likely To Be Between $1-$5 Billion (GS)

Fox Business News’ Charlie Gasparino is reporting that Goldman Sachs (NYSE: GS) will likely settle the civil fraud case brought against the firm by the SEC for between $1 billion and $5 billion.

Goldman (GS) has been accused of misleading clients with regard to a synthetic CDO that the firm structured at the behest of hedge fund Paulson & Co. and subsequently sold to a German bank. Paulson took the short side of the trade.

Above is the 5 minute Line chart ,Just while updating look its freefall in stock.

Just see my targets for these stock ,I had written last week.Search now.

Updated at 20:36/6th May/Baroda

Market Wisdom from Bernard Baruch

You don’t read a lot about Bernard Baruchanymore, but his teachings about the market are useful today as they always have been. There are several good books about him including his own“Baruch: My Own Story” which I recommend highly especially for those of you looking for a book to take with you on your summer vacations.

Although I’ve provided several quotes from Bernard Baruch through the years, here are some notes that I’ve taken from reading about him and his market wisdom. Enjoy!

  • Baruch started out as most traders do – i.e. losing lots of money because he lacked the knowledge, experience, & discipline. “You have to lose money in order to better yourself.”
  • Real success in the market takes time and money. Unfortunately “most people view the market as the place where the miracle of great and quick riches can be performed with little effort.”
  • Overtrading and holding too many positions in his early years caused Baruch to go broke many times before he developed the discipline to succeed.
  • A successful speculation is “a man who observes the future and acts before it occurs.” Acting swiftly in the market is important.
  • After losing money from the recommendation of others, Baruch focused himself on the facts. “One must search through a maze of complex and contradictory details to get to the significant facts…..Then he must be able to operate coldly, clearly, and skillfully on the basis of those facts.” The challenge for the successful speculator is “how to disentangle the cold hard facts from the rather warm feelings of the people dealing with the facts.” Moreover, “if you get all the facts, your judgment can be right; if you don’t get all the facts, it can’t be right.” (more…)

Trading Wisdom by Larry Hite & Marty Schwartz

Larry Hite

While the speculator doesn’t have the product knowledge or speed, he does have the advantage of not having to play. The speculator can choose to only bet when the odds are in his favor. That is an important positional advantage.

In the above quote, Larry is referring to the fact that smaller retail traders have the advantage of being able to sit out an wait patiently for the best opportunities. Bigger institutional traders have to trade more and whilst they might have a speed advantage, the retail trader has to use his advantage of being able to trade like a sniper to its fullest.

Frankly, I don’t see markets; I see risks, rewards, and money.

The above quote stresses the importance of seeing each trade as a risk reward ratio, rather than just a potential profit opportunity. Pro traders calculate their risk first and then their reward, if the risk reward ratio of a trade doesn’t make sense then they don’t trade.

Marty Schwartz

 I always laugh at people who say, “I’ve never met a rich technician.” I love that! It’s such an arrogant, nonsensical response. I used fundamentals for nine years and got rich as a technician. (more…)

Two Trading related Films

Question. Have you seen the new Wall Street film, Money Never Sleeps? If so, what did you think?

http://www.wallstreetmoneyneversleeps.com/

The original film is, of course, a classic. I have no idea how many times I’ve seen it over the years, and no doubt will see it again several times in the future. I haven’t, as yet, seen the new one, but I fully expect to do so. 

It seems like the box office figures haven’t held up very well, but that’s not necessarily a reflection of the quality of the film where someone from a markets background is concerned. This doesn’t strike me as being one that requires the big screen experience, however, so I can see myself waiting for it to come out on DVD.

Should I not do that? I’d love to hear from folks who been. If so, leave a comment below with your thoughts.

A film I did see recently is Floored, the documentary about the decline of pit trading in the Chicago futures exchange arena. It was screened at the Vegas Futures & Forex expo, with the director in attendance. There were some interesting elements, but I’m not going to sing its praises from the rooftops or anything like that. Basically, it’s a tale of a disappearing business, which is part of they way things work in a free enterprise society. New, better ways replace older ones and folks who cannot adopt are left behind.

One of the most amazing scenes in Floored is one where a guy who clearly has embraced computer assisted trading is facing off against a floor trader. The latter is ranting about how computers are evil. It’s sad, really.

See the wonder of our Technical OCTOPUS, Unstoppable

Germans may stop Octopus from forecasting, but out charts are eternal. 

In Today morning’s web-site write up, under BSE Sensex banner all time zone edges were mentioned.  As forecasted NF started tumbling from exactly 5454 high.

 Our Repeated message since 1st hr of trade today was:  Short NF with stoploss of 5455-

5463 for a downward target of 5384,5344.  Exit& Short IT and Bank indexes too.

Alert :Stoploss NF 54555463.Below 5440 will kiss 5399-5385 in panic.Dont jump and buy.Sell any stock and every stock with keeping stop of today’s high…save this mssge.

 

Red ALERT :Watch 5985 for CNX IT.Break will create panic and then watch panic in all IT Stocks,Nonstop slide upto 5914-5891 not ruled out.

ALERT :Bank NF below 9978 problem for Bulls.It will crash to kiss 9838-9791 in hrs.Already told to sell and go short any stock or Index with stop of today’s high.

We need not tell u what happened by the end of the day. 

Our subscribers don’t need any insurance, for their wealth or health since our promptings take care of both.

Written many times ,We are having Bad Habit to Mint Money every moment ,every hr & every day…….its not our fault.

Right Moment song………..for all of u

Updated at 16:02/14th July/Baroda

 

Week Eight

Lots of back and forth this week, but not much progress in either direction!

SPX-WEEKLY

At the end of the both February and the 8th trading week of the year, here is where we now stand:

  • Dow: -0.74% this week & -0.99% for year

  • S&P 500: -0.42% this week & -0.95% this year

  • Nasdaq: -0.25% this week & -1.36% this year

  • Russell 2000: -0.48% this week & +0.51% this year

It was also a very positive February overall with +2% gains in both the S&P & Dow and +4% gains in the Nasdaq & Russell. In fact, following impressive +3% gains in week seven, the market refused to roll over or give much ground this week.

Follow Trends

From Richard Russell:

Primary trends can be likened to the power of the ocean tides. Build a sand castle against the ocean tide, and the first wave will wash your castle away. Build a cement wall against the tide, and in a matter of years the cement wall will be reduced to sand and rubble…primary trends, one way or another, go to completion. Or to put it another way, a primary trend will go to completion, no matter what..I said from the beginning, “let the bear market fully express itself.” One way or another it will express itself regardless of the wishes of Washington or the Fed or the Treasury. Interfering with the primary trend will just drag out the situation and make it worse — it will be turning a menace into a Frankenstein…According to Dow Theory, neither the depth nor the duration of a bear market can be predicted in advance. In this bear market, the Dow could fall to 4,000 or 400. I honestly don’t know the answer. In my experience, primary trend tend to carry further than anyone expects. I do know this — yesterday the following broke below their June lows — the Dow, the Transports, the NYSE Composite (which includes ALL NYSE stocks), the S&P Composite, the NASDAQ and the Russell 2000. Any way you look at it, that’s bad action. Maybe just as bad, new lows on the NYSE surged to 164. Hundreds of stocks are breaking down, and even more are hovering just above their 52-week lows. The lower depths of this market are opening up like a giant graveyard. It is said that in a big bear market, stocks return to their original homes — Wall Street.”

Can it happen? Yes. Does anyone know for sure? No. Follow trends.

How Mistakes Can Become Baggage

Those of us who don’t learn from mistakes are destined to repeat them. Most traders are busy focusing on trying to understand what moves the market, but an equally beneficial endeavor is understanding what causes you to move.

This involves knowing the underlying, often subconscious to a degree,  reasons behind your entries and exit decisions. The inner market. Understanding the connection between your internal state and your behavior is a very effective way to get a handle on repeated mistakes.

In general, P&L is an expression of how well you control your actions, not how well you analyze charts, the market, economy etc. Or more accurately, how well you control your actions when facing the discomfort of uncertainty. 

Mistakes become emotional baggage when we choose not to learn from them. Not wanting those moments where we can see the truth about our own issues ensures they return again.

3 Trading Wisdom Thoughts

1) Focus on being profitable for the week – Individual trades may go against you and individual trading days can offer little opportunity. As a senior trader once explained to me, for the active trader, however, there are enough fresh opportunities in a week to make it reasonable to set a goal of being profitable for the week. You won’t reach your goal every single week, but the mere act of setting the goal keeps you focused. For example, you don’t want to lose so much money in a single day that you can’t make it back during the other days of the week. You also don’t want to lose so much money on a single trade that you can’t come back during the remainder of the day. When you really push yourself to be profitable every week, you don’t let individual days get away from you. And when you don’t let individual days get away from you, you start managing each trade carefully to ensure that your largest loss won’t exceed your largest gain. Time and again I’ve seen a consistent sign of progress among developing traders: they stop digging themselves into holes.
2) Take what the market gives you – Today I peeled out of several short positions after a spate of very negative TICK readings in the afternoon. I’ve learned that such concentrated selling often precedes nasty short-covering rallies. My S&P position hadn’t made as much profit as my NASDAQ and Russell positions, but the market doesn’t care about that. I took what the market gave me and started the week green. Did the market go down even further after I exited? Absolutely. As one experienced trader explained to me, when the market rewards your position right off the bat, you want to take something off the table. You might let a piece of your position ride if you have a longer-term opinion, but never give green a chance to become red. A winner that turns into a loser is a double loss. (more…)

Paul Tudor Jones Quotes

I believe the very best money is made at the market turns. Everyone says you get killed trying to pick tops and bottoms and you make all your money by playing the trend in the middle. Well for twelve years I have been missing the meat in the middle but I have made a lot of money at tops and bottoms.” …

“I’m always thinking about losing money as opposed to making money. Don’t focus on making money, focus on protecting what you have” ..

The secret to being successful from a trading perspective is to have an indefatigable and an undying and unquenchable thirst for information and knowledge.

Ninety-percent of any great trader is going to be the risk control.

When trading macro, you never have a complete information set or information edge the way analysts can have when trading individual securities. It’s a hell of a lot easier to get an information edge on one stock than it is on the S&P 500. When it comes to trading macro, you cannot rely solely on fundamentals; you have to be a tape reader, which is something of a lost art form.

These days, there are many more deep intellectuals in the business, and that, coupled with the explosion of information on the Internet, creates the illusion that there is an explanation for everything and that the primary task is simply to find that explanation. As a result, technical analysis is at the bottom of the study list for many of the younger generation, particularly since the skill often requires them to close their eyes and trust the price action. The pain of gain is just too overwhelming for all of us to bear