The Power of Analyst Recommendations
Filed in Knowledge Base (Everyone) | Read Article
Robert Hansen, the Francis Martin Chair in Business at Tulane University, is the brother of one of our members. The professor looked at more than 44,000 changes in recommendations between 1997 and 2003 and concluded the effect was minimal, about 0.03 per cent either way.

Leonard Mlodinow: Trade Like a Rat
Filed in Knowledge Base (Everyone) | Read Article
Want to trade better? Make more money? In directional trading, there are two possibilities. You must either 1. have a strategy that exploits randomness and bet accordingly or 2. have a method to detect and trade fads (and also bet accordingly). The esteemed physicist Leonard Mlodinow explains why.
Richard Bernstein’s 10 Investment Guidelines
Filed in Knowledge Base (Everyone) | Read Article
Richard Bernstein left Merrill Lynch a couple of weeks ago after spending twenty years at the firm. His parting comments were reported to be ten of the most important investment guidelines he learned.
Message Processing Bias
Filed in Knowledge Base (Everyone) | Read Article
Felix mentioned the bipartisanship of Stephen Colbert yesterday. Countdown also did a segment on this and focused on message processing bias, a human trait that is definitely not limited to political persuasion.
Malcolm Gladwell on Talent and Success
Filed in Knowledge Base (Everyone) | Read Article
This is a good one to show to the kids to encourage them in their studies, sports and piano lessons, but unfortunately, when it comes to trading, practice does not necessarily make perfect and persistence usually doesn’t pay off.
COIN - Converted Organics Inc. (update)
Filed in Knowledge Base (Everyone) | Read Article
We reviewed Converted Organics Inc. for premium members on January 15, 2008. In view of current price action, the original article is being reprinted and made available in the Knowledge Base for educational purposes.
EBS - Emergent BioSolutions Inc. (Update)
Filed in Knowledge Base (Everyone) | Read Article
We reviewed Emergent BioSolutions Inc. for premium members on January 9, 2009. Since then, EBS has collapsed and is currently flashing the popular 50/200-day MA downcross. In view of current price action, we are republishing the article for educational purposes and adding it to the Knowledge Base which is FREE for all registered members.
Sentiment Lesson from Corn & Soybeans
Filed in Knowledge Base (Everyone) | Read Article
The summer of 2008 was a very interesting time for trading corn and soybeans. Traders saw record prices as analysts and commodity gurus projected prices to go “to infinity and beyond!” Investors can learn much by studying the wild ride in corn and soybeans. How many times have we seen investors taken through the up and down cycles in stocks, commodities, real estate, bonds, etc.?
GDX - Market Vectors Gold Miners ETF
Filed in Knowledge Base (Everyone) | Read Article
John Murphy is a doyen of technical analysis. He recently published an article about Market Vectors Gold Miners ETF (NYSE:GDX). His comments were presented with the chart below and illustrates the reason why we review the 50/200 “cross” signals for premium members.
RGLD - Royal Gold, Inc.
Filed in Knowledge Base (Everyone) | Read Article
We reviewed Royal Gold, Inc. (NASD:RGLD) on December 26th well before the latest upswing on gold. Let’s update the charts and take a look at market sentiment.