To garner extraordinary profit you must first of all wake up so that you can see the truth and understand both the art of war and the laws of economics. We will concern ourselves with opportunities for speculative profits based on government intervention into the free market. This is a study of human action by […]
Q: Your short selling maven activity has, on at least 3 occasions, made the front pages of the North American financial press. Twice to the front page of Barrons, the Wall Street Journal Company’s weekly. Do you expect to get any press now and how much of what is in the movie “The Big Short” […]
Q: Do all market price gaps get filled? A: That is the tendency, yes. Q: Then that information can be useful in predicting future price action? Is this something you use to call the low in the gold market? If so, how do you use it? A: Price gaps indicate an imbalance of buy and […]
Q: Are you turned off by the zero sum and negative nature of market speculation? Especially short selling? A: No. It is only a zero sum game for the speculators involved. For the market economy, it is a win win. The price signals sent by the changes caused by the nature of market speculation are […]
Q: Can I get a five-to-one advantage over 98% of market players using the Fixed System? A: Yes. That’s the minimum. It’s possible to get more as your skill improves. Q: Why do you say the advantage is at minimum five to one? What’s your basis for saying that? A: I once took a week-long […]
Q: When a proposal for short selling is presented, a frequent objection is that profit potential is limited in that the shares can only go down to zero but losses are potentially infinite since there is no limit, in theory, to how high the stock price can go. How do you answer such an objection? […]
Q: Does Amazon (AMZN) qualify for the Fixed System Short List No. 2? A: Yes, it qualifies but it isn’t on just yet. I’m currently reviewing a lot of options and waiting for the completion of a countertrend bear market rally. Q: Do you see any accounting issues with Amazon? A: No more than all […]
Q:I understand that you’ve started a second short list. Can you give us more details? A: Yes, the Fixed System Short List #2. Criteria for getting on the list are as follows: A prior price rise greater than 500% A large market capitalization that makes further price rises unlikely to exceed 33% Sufficient opportunity for […]
Q: We have had a significant up move in the gold mining shares since the middle of January. I remember your suggesting that for portfolio investors, dollar cost averaging into the shares was a sound strategy. Have you changed your view now? A: No, it is a sound strategy still for anyone looking to acquire […]
Regarding Stock Market Capitulation Q: I see that Tesla Motors was down to $148 yesterday (written on Feb 9.) from $211 on January 8, 2016 when you placed it on your short list. That comes out to a 60% rate of return on a retail margin for short selling of 50% in less than a […]
Why, in Applying the Fixed System, Does Subjective Value Win over Government Intervention? A market price refers to what a willing buyer and a willing seller will contractually agree. To the extent that force or fraud exists, as it does with all government intervention, the transaction is not willing and therefore does not reflect a […]
The Fixed System Short List TSLA closed February 2, 2016 at $182.78, a drop of $28.22 in just eighteen days. That’s a profit of 26% if your broker requires a 50% retail margin on a short sale, and better than double if you’re trading options, in this case put options. For a portfolio manager, the […]