Psychology : Finance

Mon, 06 Jun 2005 13:17:55 GMT

Hands up, (Canada too, eh?) America. Bill Moyers opened the last day of the Take Back America conference in D.C. to a cheering crowd. He began his speech with tales of ordinary Americans struggling with financial setbacks. "My world-view has been a work-in-progress, molded by the stories I’ve heard from the people I’ve met," said Moyers, displaying a clip from one of his documentaries, titled Minimum Wages: The New Economy in which a family grapples with job loss and forclosure. "Seeing those people again, I was reminded of what turns their personal trauma into a political travesty," he said. "They are deeply patriotic. They love this… [The ITT List]

Tue, 24 May 2005 20:09:31 GMT

Are Canadian Banks Safe?

Thu, 05 May 2005 16:50:03 GMT

A $310 Million Loss in Three Months on a Single Trade?
5/4/2005 6:22:58 PM

What would you think of the investment skills of someone who lost $310 million in three months on a single trade?

"Not much" would be the kindest answer that most folks could muster. That is, until they learned how $310 million represents "only" about 1.5% of the total size of the trade. Do the math: Yes indeed, that's $21 billion. Now you know that we must be discussing someone whose wealth is on the scale of, well, Warren Buffet.

As for the trade in question -- Buffet has been betting against the U.S. dollar this year, and published reports this past weekend spelled out the size of the losses. Of course, Warren Buffet is supposed to be the ultimate buy & hold investor, so his position against the dollar may well succeed in the longer term. Plus it's hard not to admire the fortitude and fortune of an individual who can hold his ground in the face of a $310 million loss, even if it is only 1.5% of the trade.

What's the real relevance of this story?

Buffet's position regarding the dollar has been well known, especially since late last year when the whole world was bearish the dollar. This broader sentiment alone was nearly enough for us to take the opposite view -- the Elliott wave price patterns made it a virtually airtight case. The Elliott Wave Theorist.

Tue, 03 May 2005 01:01:24 GMT

Many folks who love a good movie will choose to draw the line at the horror genre. The stresses of life in the real world being what they are, getting scared into cardiac arrest probably doesn't meet their common-sense definition of "entertainment."

Well, we all know that common sense can be overrated. What's more, you needn't be scared of being scared. In fact, to stay away from horror flicks is to deny yourself a couple of hours that are not just "comforting," but downright "soothing"!

Don't take my word for it, dear reader. Hearken unto a psychiatrist from the NYU Medical Center, who was also the past president of the Psychoanalytic Association of New York:

"[Horror movies] allow you to engage in an experience that is, more or less, under your control. It follows, then, that the viewing of a horror movie can act as a kind of soothing factor." (Reuters)

So don't be afraid... don't even be VERY afraid. In order to relax you, Hollywood studios "are releasing no fewer than 12 scary flicks during the summer movie season.... The tally is roughly double last's year's and far above any season in recent years, according to box office trackers."

This weekend's New York Times likewise took note of the growth in scary movies, if not the health benefits of watching them. It reported that major studios (Warner Bros.) are pushing the trend, and that "top-tier" stars (Hilary Swank) now actively seek and receive roles in horror flicks.

Is there a broader cultural import? Graphically violent and "slasher" style movies have been with us since the steady stream first began in the 1970s. In fact, violent/scary/spooky themes have been around since the early 1930s. The point is, the '70s and early '30s were memorable times in the stock market, AND important moments for violent/scary/spooky subject matter in the broader culture.

Our job is to explain when and why these pop culture trends appear and reappear, gain or lose their audience, break into new or extreme territory.

Popular culture matters -- it tells you a great deal about where we are in the larger trend that's driving social mood, and where we're headed next.

Elliott Wave Theorist...Georgia.

Sun, 01 May 2005 21:18:11 GMT

In order to see where things are unfolding...check out the historical analysis CLICK HERE.

Sun, 01 May 2005 21:12:08 GMT

China's Lenovo completes acquisition of IBM's personal computing division (AFP). AFP - China's largest computer maker Lenovo and IBM of the United States have said they had completed a deal to create the third-largest computing company in the world. [Yahoo! News: Technology]

Tue, 26 Apr 2005 16:44:04 GMT

U.S. States Eye Bonds to Boost Scientific Research. CHICAGO (Reuters) - U.S. states are considering huge debt sales to raise money for fostering scientific research in order to retool their ailing economies by attracting new kinds of businesses and jobs. [Reuters: Science]

Tue, 26 Apr 2005 01:44:25 GMT

ADV: Online Degrees - Learn More, Earn More. Find the online degree program that’s right for you at FastFind. Fill out one quick form and we’ll match you with the schools that meet your needs. Simple, easy and no obligation. [Scientific American]

Sat, 23 Apr 2005 13:59:47 GMT

ADV: Win a $10,000 Scholarship. Use it for any college, university, or education program, or pay off your student loans. The next scholarship will be awarded on September 27, 2005, so enter today! US residents only. [Scientific American]

Fri, 22 Apr 2005 16:09:54 GMT

The Psychology of the market place. This should be a good education program. Learn how to hedge.

CME^® Options Online Seminar

Date:	April 26 and April 27
Time:	3:30 p.m. - 4:30 p.m. (CT)
Title:	Options on CME E-mini Futures: The Basics (Part 1 of 2) Options on CME E-mini Futures: Trading Strategies (Part 2 of 2)
Presenters:	Dan Gramza, Gramza Capital Management

CME® E-mini™ Options, A New World of Trading Opportunity

Options trading on CME E-mini futures is growing at a spectacular rate. To help you take advantage of the opportunities these markets offer, CME is hosting a free, two-part online presentation on options principles and strategies on April 26 and April 27 at 3:30 pm (CT). Options are now available on CME E-mini S&P 500® CME E-mini NASDAQ-100® and CME E-mini Russell 2000® futures. Seven market makers have been selected for each product and are helping to build volume in the new products. CME E-mini S&P 500 Options in particular continue to set both volume and open interest records. Record Volume: 25,426 contracts Feb 25, 2005 and Record Open Interest: 178,743 positions March 11, 2005.

Tuesday, April 26, 2005
Part 1: Options on CME E-mini Futures: The Basics

This presentation will teach traders the basic options principles and applications. The session will explore CME E-mini options, and discuss why you should consider trading these exciting products.

Learn the features, advantages and risks of CME E-mini call and put options.
Understand the principles and relationship of CME E-mini option strike prices, premiums and expirations.
Discover the foundation and principles of CME E-mini options.

Wednesday, April 27, 2005
Part 2: Options on CME E-mini Futures: Trading Strategies

Volume and open interest in CME E-mini options are surging. In this session you will learn key elements needed to create CME E-mini options trading strategies. The presentation will also explore several different trading techniques using CME E-mini S&P 500, CME E-mini NASDAQ-100 and CME E-mini Russell 2000 options contracts.
Learn the benefits of trading CME E-mini options products.
Uncover the variety of CME E-mini option trading strategies.
Discover how to reduce the downside risk of a stock portfolio without disturbing the portfolio.
Find out about spreading and hedging opportunities using CME E-mini options strategies.

To participate in these presentations, please register using the links below.
Part 1: Options on CME E-mini Futures: The Basics
Part 2: Options on CME E-mini Futures: Trading Strategies

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