Quote Critique

"If all the economists in the world were laid end to end, they still wouldn't reach a conclusion."
- George Bernard Shaw (Irish dramatist, 1856-1950)

Sadly, this playwright tells more truth about economic divination than most textbooks I've read. This quote is too good for commentary, so I'm gonna call it quits and watch some porn.

Quote Critique

"With globalization, the big [countries] don't eat the small, the fast eat the slow."
- Thomas L. Friedman (NY Times foreign affairs columnist, referring to the Arab nations)

A cryptic quote without context, I can only assume Mr. Friedman was hungry when he wrote this commentary. Using words like fast, slow, big and small, confuses me because I have no idea what sort of metrics he reviewed to formulate this opinion. IMHO, countries that produce and utilize cheap, efficient weaponry, outlast the competition in the game of global survivor.

Quote Critique

"The big guys are the status quo, not the innovators."
- Kenneth L. Fisher (Forbes columnist)

Good quote, asshat speaker. I'm flying tomorrow, so rather than bore you with a personal attack upon Mr. Fisher, I will ask you to pray. Pray that I don't lose both engines to a flock of birds, that the fellow next to me is not a fat nut muttering crazy threats, and that his smelly wife can keep their colic baby under wraps. Ask your higher power to grant me an attractive stewardess who likes getting railed in the bathroom and slips all her fliers extra whiskey minis.

If all the above are made so, I will slaughter 1000 oxen to gain the favor of the gods, making the market rise. Should my conditions not be met, the market will crumble like the walls of Jericho, and I will dance amongst the corpses of idiot traders. Time to pack flammable liquid and ammunition into my luggage, ciao!

P.S. Market still looks terrible, but with the volatility higher than Keith Richards, anything is possible. TBT remains my favorite candidate for upside potential.

Quote Critique

"Writing a book is an adventure. To begin with it is a toy, an amusement; then it is a mistress, and then a master, and then a tyrant." - Winston Churchill (British statesman, 1874-1965)

This quote appears to bear little relevance to trading, but if blogs are like books, then I'm still in the nascent stages of amusement. In my naivete, I do not see how a labor of love turns into a tyrannical endeavor, but that is a secret time may reveal.

Quote Critique

"People become attached to their burdens sometimes more than the burdens are attached to them." - George Bernard Shaw (Irish dramatist, 1856-1950)

Revealing wisdom by reversing the order of words is a tried and true method, and the technique borders cliche due to its prevalence. Nevertheless, Shaw hits on an excellent point that relates to trading in a tangible way.

You get what you want out of the market. This is true for gains and loses. The propensity for individuals to ride a cratering security to zero belies an unconscious desire for emotional stimulation. Complaining about loses is a symptom of cognitive dissonance, and it echos Shaw's sentiment; many are unwilling to surrender that which ails them.

Quote Critique

"A market is the combined behavior of thousands of people responding to information, misinformation and whim." - Kenneth Chang (NY Times journalist)

Misinformation and whim probably account for more market trading than I'd like to imagine.

Quote Critique

"The public may boo me, but when I go home and think of my money, I clap."
- Horace (Roman poet-critic, Epistles, c. 20 BC)

The boos of the public don't concern me, but I plan on dying penniless, surrounded by the people I love. Money has incredible value, but only if you can give it to others. Perhaps I'll feel differently in 10 years, but clapping alone doesn't seem like much of a life.

Quote Critique

"Excellent firms don't believe in excellence - only in constant improvement and constant change."
- Tom Peters (In Search of Excellence)

Constant improvement and change is an unfortunate but necessary condition of existence within the rat race. It requires a degree of self loathing to catalyze the desired transformation, for if one is at peace, no metamorphosis is necessary. Alas, adaptation is critical to the survival of any system, and unless contentment is being in a loin cloth under the banyan tree, 'tis prudent to improve and change.

Quote Critique

"History is a collection of agreed upon lies." - Voltaire (French philosopher, 1694-1778)

Cynicism from an imprisoned drunk drug abuser is generally unpleasant, but it is easy to like the words of this famed Freemason. The conspiratorial nutcase in me screams "Dead On!" but rationally, this quote is snarky wisdom that builds nothing. I believe it, but now what?

Quote Critique

"There have been three great inventions since the beginning of time: The fire, the wheel and central banking." -Will Rogers (American humorist and showman, 1879-1935)

Being a man of the times, I'm more partial to Bic lighters, bicycles and the Internet. Nevertheless, I can't deny that central banking is good to those who run the show; three cheers for fractional reserve lending! Corruption and politics aside, I love the Fed because their Reserve Notes smell good, look pretty under UV, and are accepted in any Banana Republic or war zone.

Quote Critique

Hypnotized by abject boredom, I picked up the 2009 Stock Traders Almanac in order to feel the joy of material acquisition. Needless to say, I'm not surprised to find it useless for trading, but the daily quotes are good bathroom reading. Thus, I will be plagiarizing each nugget of wisdom, and analyze its merit for my amusement.

"Major bottoms are usually made when analysts cut their earnings estimates and companies report earnings which are below expectations." -Edward Babbitt Jr. (Avatar Associates)

Wall Street is full of this contrarian rhetoric, so take it with a grain of salt. Clearly bottoms are made during times of overwhelming fear, but this sort of generalization can give the wrong impression to naive investors. Getting involved with a company that is slashing its earnings and being marked down by the Street is psychologically challenging, and often requires years of patience to prove fruitful.