Tyler Bollhorn’s rules. He runs www.stockscores.com. Lifted from Tishendorf again.

These have a lot of overlap with Gartman’s. The one that is a bit different, is number 26: that the pressure to mean-revert grows as a price moves further from its trend price.

1. Buying a weak …

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This was copied from The Tischendorf Letter website. The rules were compiled by Dennis Gartman, but as the generously admits, he didn’t come up with them. My take is that these rules are mainly useful to understand what other traders will be doing, and given that markets spend most …

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Most hated, vs most loved sectors

This tweet makes the case that the outperformance of tech (represented by $XLK) against (conventional) energy (represented by $XLE) has gone too far. It’s hard to time this sort of reversal, but it is hard to see this going on for much longer …

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Morning report

Stocks are down, yields are down, the curve is flattening. Brexit is claimed to be the reason, but I have no reason to believe it. Usually, a treasury secretary or a central banker is wheeled out at this point to promise more fiscal or monetary stimulus. I have …

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Wrap

Fairly risk neutral today. AirBnB IPO’d with a pop of 100%. The bubble stocks are bubbling. Yield curves are bending down, slightly. Currencies have no clear direction. The yen was up, the euro down. The ECB is continuing QE, but the market had already discounted the move. Boris …

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Fraud is a buy

There are plenty of companies that make money fraudulently. Most of these companies will not be around in twenty years. But this doesn’t mean to say that anyone can make money shorting them. I’m not saying that Slack was a fraud, but it was …

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Principled Perspectives

I don’t believe that just because someone is a billionaire, that he or she has anything particularly worthwhile to say on politics, or art, or science or really anything outside his direct experience. Even that may be the result of luck, or be more down to luck …

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Inflation worry watch

Bloomberg is in on the act. This argues that because the pandemic pushed down the price level this year, as we normalize the readings are going to look bad next year, even if the real price level isn’t much changed from where it was expected to …

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Britains Green New Deal

Jonathan Ford rightly rubbishes the proposals from the government to create jobs. The argument is well rehearsed. The fallacy is to assume that all jobs are equally productive. They are not. The sole purpose of economic activity is to consume, and the market is the perfect …

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Do we really have robust jobs growth?

This questions the strength of the recovery in jobs in the UK.

source: tradingeconomics.com

Oil

Demand is weak in the west, but strong in Asia. Shale is (surely?) not coming back. Libya and Iran may start selling. Who knows what will happen …

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