Monthly Archives: May 2010

Google Offers FREE Smartphone For All

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Google has just released the world’s first FREE smartphone. Now everyone can have a free smartphone. Google even pays the monthly fee. The new Google Whispers smartphone is set to turn the smartphone industry on its ear.

Stock Trading Strategy Short Euro (EUO)

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Lance thinks there is still plenty of downside left in the Euro. In this episode, Lance talks about the news that just broke about Fitch downgrading Spain’s debt, the second such downgrade in the last month.

If this isn’t bad enough, rumor on the street is that Greece is seriously looking at dumping the Euro and going back to the Drachma standard. The reason is that they could then inflate their way out of debt.

That’s the big uproar from many countries on the Euro standard is that they lack the ability to inflate their way out of debt like we do here in the United States. This is a powerful argument and may even cause countries to begin dumping the Euro.

But even if countries don’t start dumping the Euro, the Euro is way overvalued to the U.S. dollar. Today it sits at a ratio of 1.2 USD equal 1 Euro. I can easily see a return to the 1 to 1 ratio against the U.S. dollar. That’s a 20% move.

Lance tells you the best way to play the crisis in Europe and how to directly profit from the demise of the Euro and he performs technical analysis on the ProShares UltraShort Euro ETF (EUO).

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Best Stocks To Buy Right Now

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If you typed into a search engine “best stocks to buy right now” boy are you stupid. This reflects a complete and total ignorance of how the market really works. You sort of deserve what you get if you’re that stupid.

In this video, Lance is not mad about amateur traders searching for what are the best stocks to buy right now. What sets Lance off is that organizations that you think have standards like Yahoo Finance, CNN Money, Fortune, and Investors Business Daily routinely publish so called “news” about what are the best stocks to buy right now. The truth is that money managers have paid to be listed in these articles and the real reason for these articles is not to help you make money but instead to push up the stocks for these money managers who already hold positions in these stocks.

One of the first things you should do to start making money in the stock market is to stop getting your stock picks from articles on Yahoo Finance or money managers who appear on TV.

In the video below, Lance reveals a recent article over Yahoo Finance that will get you screaming mad. He performs technical analysis on these so called best stocks to buy revealing horrible charts and institutional selling.

Stupid Move Of The Week: Insider Trading At Pequot Capital Management

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Get prepared to hear about some major stupidity between a Microsoft employee and Pequot Capital Management.

In this Stupid Move Of The Week episode, Lance talks about the recent insider trading that cost Pequot Capital Management $28 million in fines by the SEC as well as their reputation.

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Fibonacci Retracement In The Decision Making Process

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In this latest episode, Lance talks about the Fibonacci retracement and how you should not decide whether a market is bullish or bearish until you examine the 38.2%, 50%, and 61.8% retracement levels.

As long as the 61.8% retracement level holds, a market is still within an uptrend.

Look over Lance’s shoulder as he does Fibonacci retracement analysis of the Dow, NASDAQ, and S&P 500.

In the video below, learn what are the key support levels to watch in the coming days and weeks.

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3 Reasons It’s Not Cool to Admit You’re a Fibonacci Trader

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Fibonacci, a mathematician, lived in 1175. He was one of the greatest scientists of his time. Among his greatest achievements was the introduction of Arabic numerals to supersede the Roman figures. He developed the Fibonacci summation series:
1,1,2,3,5,8,13,21,34,55,89,144, …

This mathematical series develops when, beginning with 1,1, the next number is formed from the sum of the previous two numbers.

Dividing any number of the Fibonacci sequence by the following number in the series approaches the ratio 0.618.

Why is it that of all my many technical analysis tools–candlesticks, chart patterns, volume, MACD, ADX, RSI, Stochastics–only Fibonacci retracements lower my sense of self worth? Maybe it’s because…


#3 The Pyramid Of Gizeh

Oh look, I’m using a tool that ancient civilizations used before people grew smart enough to invent things like steel, cement, and cranes.

One edge of the Pyramid of Gizeh is 783.3 feet long, the height of the Pyramid is 484.4 feet. The length of one sideline divided by height leads to the ratio 1.618. The height of 484.4 feet corresponds to 5,813 inches (5, 8, 13) from the Fibonacci sequence.

#2 Plants

It’s hard for me to maintain my self-image as a mature, well studied stock trader when I sit down to my trading desk and think about ahem, flowers. It sort of feels like my daughter asking me to hold her purse in a store.

The Fibonacci sequence can be found in the number of axils on the stem of a plant as it develops. A new branch springs from the axil and more branches grow from the new branch. When the old and new branches are added together, a Fibonacci number is found in each horizontal plane.

The Fibonacci sequence also occurs if we look at certain flowers. The number and arrangement of the florets in the head of a member of the composite family is a beautiful example of the Fibonacci sequence found in nature.


Iris = 3 petals
Primrose = 5 petals
Ragwort = 13 petals
Daisy = 34 petals
Michalmas Daisy = 55 and 89 petals

#1 The Logarithmic Spiral

Right. Scientology has wormed its way into even stock trading! This spiral crap is the stuff that Tom Cruise worships. Am I going Tom Cruize Crazy?

The spiral has been a common occurrence in the natural world for millions of years. The successive chambers of the nautilus are build on the framework of a logarithmic spiral. As the shell grows, the size of the chambers increases, but their shape remains the same. The length of the sides form a Fibonacci series.

Knowing WHEN To Trade Is As Important As Knowing What To Trade

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In this episode, Lance shows you why he recommends that you sit in cash right now.

Most amateur traders over trade or churn their trading accounts during periods when they should have just sat back in cash.

Amateur traders think there are two types of trades: Long and Shorts. But there is a third option, sitting back in cash. In fact, knowing when to sit back in cash is just as important as knowing which stock to buy or short.

In this stock market tutorial, look over Lance’s shoulder as he examines the S&P 500.

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Insider Trading At Bruce Berkowitz’s Fairholme Fund?

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On April 30th, 2010, Bruce Berkowitz’s Fairholme Fund revealed in a filing with the SEC a 69.4% increase in their holdings of AIG in the previous 6 weeks.

Now why would Bruce be buying AIG with both hands as if there’s no tomorrow? Especially when you consider that AIG was under criminal investigation!

Then the news broke today that no criminal charges would be filed against AIG.

Let’s put prejudice Jewish comments about Bruce Berkowitz and how the Jews have better access to information than average street traders like you and me aside. Insider trading is still illegal regardless of whether you are Jewish or not.

The SEC needs to investigate Bruce Berkowitz’s Fairholme Fund. Here we have quick and massive buying in AIG, approximately 10,429,700 shares in the 6 weeks before it is released to the public that no criminal charges will be filed against AIG! AIG traded at an average share price of $37.50 during the 6 weeks before the Justice Department announced no criminal charges so that’s a purchase of approximately $391,113,750!

It looks like Bruce had access inside the Justice Department and was told in advance that no criminal charges would be filed while the rest of us peasants were kept in the dark.

No one would have noticed Bruce’s purchase had he not been so greedy by purchasing nearly half a billion dollars worth of shares in a 6 week period prior to the announcement that no charges would be filed against AIG.

Once again, people with a lot of money can buy access to information us peasant traders can’t.

Is that really the Capitalism that George Bush and the Republicans have built over the last 8 years? Special favors and access to the rich while the average trader on the street gets screwed?

At some point we have to demand equal rights as smaller traders. We need a small investor’s bill of rights.

Special favors for the rich while screwing the average citizen seems to be the way of the world in this great societal experiment we call Capitalism. It permeates through all facets of our society, including that of stock trading.