I received a Linkedin request yesterday seeking to connect that also said this:

Bought the TTC few years ago. Now managing millions on the futures markets. Thanks, David B.

A man of few words, but some good words!

Everything done today by U.S. political goons is all about one thing — prop up the stock market no matter what. Dollar down? So what! Stock market is up! Inflation is on the doorstep do we need to raise rates? No way! We can’t do that it will pop the stock market! It’s almost like policy makers believe that even though the value of U.S. equities is being diminished by a dropping dollar, if they don’t prop the stock market up all hell will break loose. Or maybe they believe that a crashed stock market could stay that way permanently — causing a psychological meltdown that can’t be recovered from. More:

Today I re-watched an interview with legendary trader Larry Hite that we shot. He opens his interview in the most self-deprecating way by saying that while he was in kindergarten (age 5) he did not pass “blocks”. I forgot about that line and about spit out my drink!

I saw this:

This actually would be my one and only criticism of Covel. He makes it sound like ANYBODY can successfully create and follow a mechanical system and make money like clockwork. IMO most people are not cut out for it…The amount of discipline required is zen-like.

First, putting aside ‘trend following’, and just considering any worthwhile endeavor, people CAN & DO make anything happen in life. The Talent Code and Talent is Overrated both make a strong case against this position. Second, my book The Complete TurtleTrader is an even better response to the “everyone can’t do it” line. The story of how an actor, a musician, a drug dealer, blackjack players — novices — made millions is inspirational. I am the first one to say that the Turtle story almost seems like fiction, but it’s not.

I caught some criticism of “The Complete TurtleTrader” recently that was worth responding to. People should keep in mind that the Turtle story has spanned three decades and dozens upon dozens of people. As a biographer of such a story you have to make decisions about who the real players are and who the bit players are. Once you have properly determined the bit players including every last detail about them, good or bad, doesn’t make much sense. For example, the following text was authored by an ex-Turtle and NOT included in my book:

“I am writing to inform you that as of July 31, 2001, [...] has liquidated all open positions, and has stopped trading in the futures markets. Unless I receive a response from a majority of you to the contrary, there are no plans to resume trading of any kind at this point, and instead we will be seeking an orderly dissolution of the company, and a return of all monies to the investors, as quickly and expeditiously as possible. The reasons for this decision are many, but the primary factor is that we simply have not made any money in almost three years. After getting off to a profitable start the first year, the fund is now showing a negative return of about ten percent since inception. I think that the trading game has somehow fundamentally changed, and that long-term trend following is no longer a viable approach to extracting profits from either the futures or equity markets.”

Clearly, the inane statement “long-term trend following is no longer a viable approach to extracting profits from either the futures or equity markets” was not true. I can only assume that this statement was designed for some other purpose 8 years ago.

I caught this tonight. An excerpt:

The San Francisco metro area has seen its home values drop by a quarter, and the city still has some pain to work through. The city’s median home price is expected fall another 8.3% by June 2010. After that, however, the market there may come roaring back: Fiserv predicts a 14.3% gain between June 2010 and June 2011. Averaged out, that means a 4.8% gain over the next two years.

Wow. That’s like free money! Unreal gibberish.

I read a new book today called “Crush It”. Quick read. It inspired me to rewrite my “description”. Better?

I have a feeling my linking to this (PDF) will soon see it disappear!

I don’t know exactly what “Net Neutrality” or the “Fairness Doctrine” means, but I do know in simple terms a bunch of federal government idiots are being pondered as the gatekeepers of approved content on the web. How do we actually make fun of the Communist Chinese government for censorship when there are fools in America who think legislating “opinion fairness” is appropriate? There are so many aspects of current day America that make me want to puke in a bucket. When you look ahead 100+ years, and assume a never ending supply of loser busy bodies, clearly America has peaked.

Forget capitalism debates, the government types already won:

Eric Crittenden of Blackstar Funds, LLC emailed some new research today titled “Does Trend Following Work on Stocks? Part II (PDF).” Take a look.

Part 1:

Part 2: