Books Worth Reading

This is a follow up to a previous post… I believe with the recently increased readership here at ISYN that this list may help you help yourself become a better trader, investor, and person.

I’m able to recommend every book below because I’ve read them. If you don’t read, you should… every new book I read puts me more on top of my game.

Market-Focused Books

Reminiscences of a Stock Operator
written by: Edwin Lefevre

Trader Vic II
written by: Victor Sperandeo

Market Wizards
written by: Jack Schwager

New Market Wizards
written by: Jack Schwager

Trading For A Living
written by: Alexander Elder

Liar’s Poker
written by: Michael Lewis

Confessions of a Street Addict
written by: James Cramer

Other-Focused Books

How To Win Friends & Influence People
written by: Dale Carnegie

Acres of Diamonds
written by: Russell Conwell

Ten Things I Learned From Bill Porter
written by: Shelly Brady

Think & Grow Rich
written by: Napoleon Hill

Wild At Heart
written by: John Eldredge

Interludes….

Boondock Saints II is out! Go see it

Thanks to JP for the introduction to this song.

And I know this is older but it’s a hell of a video…

And finally… Chris Elliot as the caretaker in Scary Movie.

L.o.E.

I have shown an impressive lack of effort in regard to the quality of this website and the information contained within. The former isn’t going to change because it’s still a hobby but the latter will change starting with my next post. Prior to now I have mainly posted the idea without any form of supporting argument. All the analysis I perform on my own is not presented and there was a reason for that – I expect everyone should do their own research and not make decisions based on someone else’s thoughts or expectations. That being said, I believe it would be more beneficial to you if I included some of my analysis going forward.

You may expect more from me going forward.

-ISYN

Spend a little time welcoming Fall into the picture with Cannonball….

Short Ideas

Do your own research prior to making any investment/trading decisions. Always assume I am biased in the ideas presented.

CNX

Showed weakness today in market other names are driving forward in. This follows significant runup in past ten days. Ripe for further downside if market shows any weakness, which I expect it to.

 

JOYG

I would short around $49 – $50 unless it shows weakness tomorrow and can’t make it that high, in which case I’d short tomorrow.

 

In honor of the hockey season starting up again and the hardest time of the year for the market I present the following…

Short Idea

Always do your own research prior to making any investment/trading decisions. Always assume I am biased with all the ideas presented.

TOT

This is strictly a technical play. Asian markets down almost across the board. TOT has had a very strong gapping run up from ~$58 to ~$61 following a move from ~$52 to ~$58. The volume on the recent move was less than I would have liked to see for a high-probability break out, and if it isn’t going to break out, I expect a break down.

Do

 

And for your enjoyment…

Welcome To The DANGER ZONE

Do your own research prior to making any investment/trading decisions. Always assume I am biased on a direct and/or indirect level with all ideas presented.

A couple interesting short setups I would like to point out. These are very high risk so do your own research.

I remain of the opinion that we’re looking for a decline in the general market. That being said, check out FUQI and ANR.

FUQI

ANR

UPDATE: found this article which is interesting.
http://www.schaeffersresearch.com/commentary/content/bearish+option+bettors+target+alpha+natural+resources+inc/trading_floor_blog.aspx?ID=95080

Combining my market expectations with the recent runup in these names on relatively muted volume caused me to bring them to your attention.

Long Exposure

Do your own research prior to making any investment/trading decisions. Assume that I am biased directly and/or indirectly with every idea.

If you’re going to have a net short position it’s good to have some long exposure in a name you believe has upside potential despite the declining market expectation.

SIGM – Sigma Designs

As of 9/2 the name had ~30% of its float short, according to Bloomberg. This is a massive proportion and the float is relatively small which presents an interesting short squeeze play. It was trading ~370mm market cap with an ~300mm book value with positive earnings. I expect shorts will start covering their positions to take profits as the name has come in from $17 to $14 and change. A good loss exit point would be $13.80 and a profit exit of ~$15 – $16 should be a worthwhile risk/reward opportunity.

Further Disclosure: I have a long position

Nasdaq and the General Market

Always do your own research prior to making any investment/trading decisions. Assume I am biased directly and/or indirectly with all of my ideas.

The general market has been expecting a correction for some time, myself included. On a technical basis we may finally be on the cusp and ready to drop. I use displaced moving averages instead of traditional because in trending markets it effectively and significantly lowers the amount of head fakes. The following chart is of the Nasdaq on a daily basis and shows the major DMA being hit/crossed yesterday and if there is no major rally to the upside by next Tuesday it’s go time. Also, please note that the market’s been struggling to recover following some of the steeper declines and the amount of time and distance of this current rally has been exceptional, much as the prior decline, and should be close to correcting.

 

A Short Idea

Do your own research prior to making any investment/trading decisions. Always assume I am directly and/or indirectly biased with my ideas.

If you’re looking for some short exposure the following names show relatively decent risk/reward setups.

OC – Owens Corning

I would take a loss at $23.25 and take ST profits at $20.50 or LT profits at $17.00.

ECA – EnCana Corporation

Loss exit $54; Profit exit $46

 

Something To Consider

Do your own research prior to making any investment/trading decisions. Always assume I am indirectly and/or directly biased in my recommendations.

Crude oil looks like it’s setting up a nice double top via USO . This one is a fairly straightforward entry/exit play… USO breaks above $40, cut your losses. In addition you could go long UNG (natural gas ETF) at the same time as the ratio mentioned here comes together (hopefully).

One (very risky) way to play an oil short is via DTO. IT IS IMPERATIVE YOU DO YOUR OWN RESEARCH ON THE RISKS ASSOCIATED WITH LEVERAGED ETF’s PRIOR TO MAKING ANY DECISIONS.

Following is a chart of USO which tracks light, sweet crude oil.

Now DTO

and finally, UNG

No relevance but had to include this…. check out the guy on rollerblades near the end

Books Worth Reading

Below are a few books I’ve read recently which I believe are well worth your time.

Market Insight

Reminiscences of a Stock Operator
written by: Edwin Lefevre

The single best book I’ve read on the markets and speculation in general. It’s in story form so it’s an easy read but incredibly useful. HIGHLY recommended.

Market Wizards
written by: Jack Schwager

A solid collection of interviews with great traders and investors. Garnered some invaluable thought process from this one.

***Update***

Trading For A Living
written by: Alexander Elder

About 50% of the way through this one… very very useful for thought process and technical analysis basics thus far. Highly recommended reading just on the first half.

***end update***

Market Entertainment

Liar’s Poker
written by: Michael Lewis

Confessions of a Street Addict
written by: James Cramer (yes, Jim Cramer, I know I know, but it’s a solid read)

Enjoy!

and as always, enjoy the interlude…

-ISYN

Get Your Feet Wet

I know many people (novice and otherwise) are concerned about putting their money to work in the stock market right now. If you’re new to investing/trading please allow me to recommend a website where you can practice your strategery (still classic) without risking your hard earned cash. I manage a portfolio on the website for fun and it’s one of the websites I’ve used to actively educate myself on the stock market.

UpDown.com

You receive one million virtual dollars you can use to short or go long ADRs, ETFs, and stocks. If you’re able to beat the market you can earn some actual money but you’ll never be liable for any losses. There are also plenty of competitions you can compete in.

Hope this helps some of you become more comfortable with trading and investing.

-ISYN

Interlude

Hope you’ve been along for the ride with this rally…

Thought I’d toss up a couple interlude videos to pass the time for you.