Michael Covel: News & Info.

https://www.ipo.google.com is not the kind of opportunity Trend Followers pursue. This is more akin to gambling than trading. The dot-com bubble mentality sure is dying slowly!

Read the following excerpt from Investors Business Daily:

“You hear it so much, it’s almost become the naysayer’s mantra: “You can’t time the market.” Short and punchy? Sure. And also completely false. The market’s price-and-volume action gives clear signs of the market’s direction. A follow-through day gives you the biggest of head starts — timing the market’s bottom. A follow-through occurs at the earliest stages of a fledgling rally. After a significant market correction, the market will look to regain its footing. Any up day then counts as Day 1 of an attempted rally. The next two sessions, Days 2 and 3, don’t need to show much in the way of gains. As long as they don’t undercut Day 1’s low, the rally remains intact. For a follow-through to occur, you want it to land between Day 4 and Day 7 of the attempted rally. On any one of those days, you’re looking for one or more of the major indexes — the Nasdaq, S&P 500 or Dow — to rise 1.7% or more in higher volume than the previous day.”
Jonah Keri, Investor’s Business Daily
All Major Bull Rallies Begin With A Follow-Through Day
Tuesday July 27, 7:00 pm ET

You will never hear a trend follower speak like this. If someone tells you he can “time the bottom”, reach and check to see if you still have your wallet.

The Economist: An eerie calm
Jul 22nd 2004

The fact that implied

He may not be a trend follower, but his words ring true:

My prediction on the market? Well, I’m with the folks who compare prognostications to passing clouds. If you look long enough, they say, you will begin to see images in their randomness. In other words, no one knows, let alone me.”
Steve McLinden
Bankrate.com

Translations for the book Trend Following into Russian, Korean & Arabic are on the horizon. Negotiations are underway.

An excerpt from the “news” today:

NEW YORK (Reuters) - The technology-dominated Nasdaq Composite Index (NasdaqSC:^IXIC - News), which had rallied on Tuesday, fell more than 2 percent, recording its biggest one-day percentage loss in more than 4 months and its lowest close in nine months…”The problem is that so many people are expecting that technology performance can’t go up from here,” said Brian Pears, head of equity trading at Victory Capital Management.

Actually, there is no problem. The market will do what the market will do. The problem is with Mr. Pears. He is trying to predict, rationalize, justify, etc. the market’s movements. Why not instead just follow market movement without trying to explain the market?

Trend Following has now cracked the top 100 of all books sold through Amazon.ca.

“I think the best traders…are very committed, very willing to recognise when they have made a mistake, know when to get out and recognise when they are succeeding,” Kiev told The Age. “(They have) dedication, focus, commitment, a willingness to review what they have done, to correct errors, to keep improving their performance, to stay engaged.”
Ari Kiev

Ari Kiev

The Trend Following book has already signed to publish a Japanese translation. We hope to announce a Chinese translation soon as negotiations are under way.

The markets sure are producing many opinions!