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Understanding “The Flash Crash” of May 6th. 2010 Following quite a number of requests this note deals with my understanding of what transpired Thursday the 6th. May when just after 2.30 PM the Dow Industrials collapsed by nearly 10% and then suddenly recovered in 11 minutes. The implications of what occurred are far reaching and unless the regulatory issues are resolved we can expect similar “events” of like nature.
Social Credit and the Tea Party Movement “The essential objective of Social Credit is to achieve an increase in purchasing power available to the common citizenry so that the resources in a society are more fully distributed in general rather than being controlled by a ruling banking elite which operates through a monopoly of credit.”
Judging from the contents of an increasing number of emails more and more investors are choosing to "actively" trade the market rather than "buy and hold." In the main, this is due to the fact that in a bear market the latter strategy creates losses that are difficult to accept long term. However another reason is that with limited business opportunity available investors are seeking "income" rather than capital gain from their investments.
Understanding Contracts For Difference ONE of the most innovative financial instruments that has been developed over the last decade or so is the CONTRACT FOR DIFFENCE, better know as a CFD. The explosion in the use of this product is one of the reasons why London, as opposed to New York, is becoming the financial location of preference for many financial managers and hedge traders. CFD's are not allowed in the U.S. due to legal restrictions imposed by the American Regulators...
Given that hyper inflation is here to stay any long term investment strategy must achieve good growth in order to protect future buying power. Most people do not have the ability to devote a great deal of time and energy to the management of their financial affairs thus any system must be simple to use. One of the best ways for a company to prove its "value" is to declare a solid and dependable dividend return.
The Dow theory has been around for almost 100 years. Developed by Charles Dow and refined by William Hamilton, many of the ideas put forward by these two men have become axioms of Wall Street...
Hundreds of theories have been advanced concerning the ups and downs of the so-called business cycle. Pigou an English economist reduced the fluctuations to the human equation. He believed the upward and down-ward swings were caused by excesses of human optimism followed by excessive pessimism. The pendulum swings too far one way and then there is a glut; it swings too far the other way and there is a scarcity...
Moving Average Convergence Divergence (MACD) Developed by Gerald Appel, MACD is one of the simplest and most reliable indicators available. MACD uses moving averages, which are lagging indicators, to include some trend following characteristics. These lagging indicators are turned into a momentum oscillator by subtracting the longer moving average from the shorter moving average. The resulting plot forms a line that oscillates above and below zero...
McClennan Indices: The McClennan Oscillator And Summation Index In developing a view on the overall condition of the stock market it helps to use the information distilled in equity indices. Two such indices are the McClennan Oscillator and the McClennan Summation Index, both of which were developed by Sherman McClennan in 1969...
Stochastic indicators were first developed by George Lane, a physician with a keen interest in technical analysis. Like many popular technical tools stochastic indicators are best learned through detailed and patient observation. You can read a book about them and feel you understand the subject pretty well, but nothing will multiply the value of what you've learned as quickly as watching how the indicators play out on a real-time chart and through live trading...
In an attempt to comprehend the current "credit crisis" I decided to try to investigate its underlying causes. To my dismay I discovered that the situation did not come about by accident but was actually conceived and planned by the International Banking Fraternity in Basel, Switzerland, in 1998.
The World's developing financial crisis is totally inter-connected with a crisis of monetary theory and until we change how money works we will change nothing. What is required is a return to a solid monetary standard that is also a return to a more moral standard, which protects real work and long-term monetary value...
Monetary Theory Of E.C. Riegel In a life spanning over 70 years, one of the greatest students of money, and its meaning, was the American E.C. Riegel. Many regarded him as a genius for his understanding of the nature and functioning of money as a human and social institution. This essay is a direct introduction to his main ideas on this subject, as, increasingly, people are beginning to realise the need for a more stable monetary unit...
The Riegel A New World Monetary Unit MORALS MATTER. The financial crisis currently unfolding in America and Western Europe will eventually morph into a social and political crisis unless the Federal Reserve's option of endlessly inflating the dollar is re-evaluated and stopped. The powers that be must realise that their monetary policy is regressive and socially flawed...
The Oscar Iden Lectures-The State of Individuals Over the past 20 years or so I have been reading, studying, talking and writing about the work of my namesake: Prof. Carroll Quigley. For forty years he lectured, finally obtaining a Professorship at the School of Foreign Service, Georgetown University, Washington...
Hegelian Materialism and Transcendence James Joyce often stated that history was a nightmare from which he sought to escape. Hegel was the first philosopher to fully incorporate time (history) into his system and thereby he produced the mental framework for advancing socialism and ultimately communism. Under his system of thought the only "time" is human time and its ultimate end product is a closed society where individuality is lost and "time" stops. Thus a nightmare of the "ever bureaucratic present" is replacing the nightmare of "history" around the globe...
Re-Evolution And The Steady State Of M. King Hubbert Integrity, intellectual honesty, courage, focus, foresight, leadership, belief in the goodness of the American people. These are descriptions that spring to mind when thinking of M. King Hubbert. He was a visionary who believed in the power of ideas and the need to use intellectual rigour to analyse and manage change. As a research geophysicist he understood the problems posed by the reality of peak oil and the cultural catastrophe that lay before humanity unless it realised the non-recurring historical nature of the growth phenomenon....
On the Evolution of Civilizations The essence of the myth of the Western tradition is the ideal of an independent life lived in liberty and dignity through family and community. This liberty and independence promotes enterprise and action. Such a myth engendered the human initiative which gave birth to such epoch-changing developments as paper money, financial credit, steam power, the combustion engine, steel hull shipping, electricity, wireless communication, television, air flight, nuclear power, the micro chip and the Internet....
An almost hysterical antagonism toward the gold standard is one issue which unites statists of all persuasions. They seem to sense - perhaps more clearly and subtly than many consistent defenders of laissez-faire - that gold and economic freedom are inseparable, that the gold standard is an instrument of laissez-faire and that each implies and requires the other...
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