Wednesday, February 14, 2007

It's a Bull Market

That's from "Reminiscences of a Stock Operator", the super trading book. The line sticks in Larry Livingston's mind (aka Jesse Livermore) as a young man, given by a successful investor as various big talkers keep mentioning trades, contrary moves, technicals, etc. Then there's "I made most of my money sitting" (quoted from memory). So today we get new highs on all three Dow indices - nixing the worry-mongers about the Transports (who seem never to have read the fine old bible of chart work by Edwards & Magee, "Technical Analysis of Stock Trends"). It's amazing what passes for a guru today. Gurus can miss a beautiful seven month trend & still blab / write like one was a stock market genius.

Buy dips. Hold until relieved - namely, real news imputes a change in the economic trajectory. Stay long & strong.

Two favorite quotes come to mind today:
“Everything is proceeding as I have foreseen.” -- The Emperor, Return of the Jedi.
“I just love it when a plan comes together." -- Hannibal Hayes, The A Team.

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