What I think of Occupy Wall Street

Basically you have a lot of unfocused (and obviously unemployed) people, bitching about their situation. It's NOT the fault of the banks, it's NOT the fault of the government, and it is NOT the fault of the rich... the fault lies squarely on their own shoulders. If you do not live beyond your means, then none of this economic crunch would really cause you any consternation.

Is it FAIR that the rich pay less on their income taxes? No.
Is it FAIR that someone can't even recoup their invested equity upon foreclosure? No

But let's face it, it wasn't the banks or the rich that ran up debt on your credit card, or caused you to be unable to pay a house payment on a loan you agreed to. It wasn't the rich who signed you up for your mobile phone plan, extended cable package, or car loan.

According to the government set poverty line, I am "poor", but I don't owe a single penny to anyone. Everything I have, I have paid for out of my own money. And the only thing that this economic crunch has caused me problems with, are the volatility of the stock markets, which in effect is both good and bad.

These people need to focus their energy on a specific issue, but do it in their spare time, after finding a job and getting their own lives in order.

Seeing these people sit around and b-tch about things, in a nation like the US, with all of the possibilities afforded to them... is like watching a child complain about the color of his Ferrari.

And what's worse? Now you have Al Sharpton joining the group. Listen, once Sharpton joins in on something, you know you have hit the bottom of the barrel.

NFLX Revisited

I mentioned NFLX had the makings of a bubble October last year.  10 months later, it has finally happened.  Cashing out on the short side took immense patience but it could be done; as you can see multiple attempts must be made in order to finally catch the downfall.

In hindsight, catching the $300 short would have been absolute luck and guessing.  A safter approach is to short at the 20/50 day ema retest which occurred 8/31/2011, just a couple weeks ago.  Resulting entry price: $230-240. 

Netflix never had unique, difficult to replicate product.  Business model doesn't bar entry from competitors.  It was just a matter of time, like many ideas in history.

Is it too late to short? No, but wait for the next 20/50 day ema retest.  The gap from $50 will be closed.

1999 vs 2011

A few stocks in the cloud computing , social media, and online streaming segments have a 1999 "bubble" feel to them. 

NFLX, OPEN, BIDU.  The patterns are very similar to CSCO, JDSU, and a few others from 1999.  Decide for yourself.  Be patient and wait for the signal.  That's how the big money is made.

2011 Outlook

2010 ended up being a year for consolidation before taking off in September.  The indices are all hitting 52 week highs and the trend is very strong to the upside.  Corporate earnings have mostly beat estimates and the higher equities price are well justified as fundamentals are supporting this move.  Short term, I believe the market will face consolidation into mid March before moving higher. 

10/26/10 - Bubbles!

NFLX:

 BIDU:

10/26/2010 Market Update

The market's current position could be interpreted as near the top in a double top formation, and it's about to start a down leg, or near the top, and about to start another run higher.  The greatest profits are made near market turns, and this could be such an opportunity.  My intuition tells me that a small leg down will start near the Nov 2nd elections with first support at 10,900 on the dow followed by 10,730.  I do not see the DOW falling much more than that. 

GNW - Monthly cup and handle