Intel rallied four dollars in a single day last month… Every technical indicator screamed overbought: RSI hit 80 MACD extended Price stretched far above moving averages. So you shorted it…And the stock ripped another six dollars against you over the next week. You focused on momentum while ignoring trend. When these two forces disagree, you’re
The S&P dropped 40 points this morning. Norwegian Cruise Lines cratered 13% despite beating earnings. Palantir got demolished. Uber broke its algorithmic channel. Even the dippers hesitated for the first time in months. Every technical indicator on the daily chart flashed red. RSI rolled over. MACD crossed negative. Money flow reversed. The momentum that carried
When you turned on the radio as a kid, you had two dial settings. AM and FM. AM stands for amplitude modulation. It’s a signal compression technique where electronic waves cycle between maximum and minimum boundaries. The wave expands to peak amplitude. Then it contracts to minimum. Then it expands again. The S&P 500 follows
My wife came home from the doctor this week. Annual mammogram. Routine checkup. She had a benign form of breast cancer three years ago. Got treated. Got through it. Now she goes every year like clockwork. She walked in complaining about the bill. The copay. The deductible. The out-of-pocket costs that keep climbing no matter
Lululemon collapsed from $516 to $165 in two years. Everyone dumped it. Money managers rotated out during quarter-end window dressing. Retail traders avoided it because the chart looked like death. I stepped in and bought 50 shares at $165. Not because I love yoga pants. Not because I’m bullish on retail. Because the math stopped
The Fed cut rates by 25 basis points yesterday. I don’t care. Because underneath that celebration, two Fed governors dissented. They’re raising doubts about cutting again in December. That matters more than you realize. Markets aren’t running on fundamentals or technicals right now. They’re running on fuel. And the Fed just signaled they’re running out.
The S&P just printed another all-time high yesterday. Again. Caterpillar beat earnings by 10% and ripped 68 dollars higher. Storage Technology delivered strong numbers and exploded 37% in a single session. Goldman Sachs and Morgan Stanley crushed estimates and kept climbing for days. You keep asking: “How is this market still going up?” Wrong question.
Eli Lilly trades at $900 per share with a 70x earnings multiple. Merck trades at 13x earnings. Pfizer trades at 13x earnings. Abbott Labs trades at 16x earnings. AstraZeneca trades at 31x earnings. These are all established pharmaceutical companies. Similar business models. Similar product portfolios. Similar market positions. Yet Lilly trades at 70x while every
Zoom trades at $85. The company: Earned $6 to $7 per share last quarter Sits on 400% cash reserves with zero debt Profit margins run at 25 Return on equity hit 13.5% DoorDash trades at $275, and they: Earned pennies per share Burn through cash to maintain 6% profit margins Bariely achieves a return on
I grew up on the beaches of Los Angeles. Friends would drive us to the shore. We’d hit the water at 6 AM for the morning glass. Boogie boards. Surfboards. Wetsuits. I lived in Hawaii and surfed there too. I’m not a great surfer. But I was a damn good boogie boarder. Now I live
