Harry Potter or Hairy Spotter?

I couldn’t resist—it’s a corny play on words--but right on the money!

Is my Moneyman a stock market wizard or a mathematical genius with the uncanny ability to spot hairy situations in the market?

Here is my MoneyMan-ism of the week: The key is in Buying Fear and Selling Happiness

The trouble is not many of us can judge clearly when there is enough fear and when there is enough happiness in the air. I like formulas. I’m not a nerd—well maybe I possess geek-like qualities . . . but in all fairness, I think I’m pretty average. I kinda like formulas . . . velocity is equal to distance over time . . what goes up must come down, for every action there is an equal and opposite reaction. Picking good and making timely choices—it’s not just a gift he possesses. . . . by golly, there is a method behind his madness!

Last Tuesday, Dan invested 35 million into some puny tech stocks – only to turn around 2 days later and sell for a 7-8% profit. . . .roughly making 2.8 million and some change.

Two questions? How did you know to do this? And how come I didn’t get the memo???
;)

Dan says to keep in mind that “an oversold market can continue to go down and an overbought market can continue to go up-the real power is generated when it swings in a rhythm.” The “rhythm” that Dan speaks of is a distinct vibration--sensitive to a multitude of external factors.

Dan relates this rhythm of the market to that of a small child on a swing. Paying attention to the movement of his swing as it reaches its apex. In this particular case, he paid attention to the 10-day moving average—it is a simple matter of advancers vs decliners . . . . subtract decliners from the advancers, then take the 10-day moving average. . .positive numbers makes the numbers move up, a neutral market will make numbers come back down . . . the market moves at a rhythm with a tendency towards changing directions at any moment. What you need to learn is how to recognize the clues that tell you exactly at what point in that curve does the number start changing directions.

So who is more powerful? A Harry Potter, with a few magic tricks and spells, a slight of hand to create illusions to please your eyes—pulling quarters from behind your ear? Or the one who learns to see the world as it is, understanding the rhythm, spotting the hairy situations of fear and happiness—creating realities and putting quarters in your pocket?

Listen for yourself: the moneyman report

I'm gonna be at the BizRadio Money Fair on Jan 9th!!!!!! Come listen to some of the greatest financial thinkers of our generation!!!!