Weekend Open Thread   Leave a comment

Bring on the weekend! As well as the usual open thread, where you can pontificate on any topic you like.

In my ongoing “summer of one-hit wonders” series, I offer you one of the classic one-hit wonders from the 1980′s: Tainted Love by Soft Cell.

The funny thing about Soft Cell’s version is that it was a cover of the 1965 version by singer Gloria Jones:

Jones never managed to hit the charts with Tainted Love. In fact, aside from Soft Cell, the only other act to chart the song was Marilyn Manson in 2001, with his unique sound:

But the most fun cover of Tainted Love was from the indie rock band Francine:

That’s it for me this week. Enjoy your weekend! Next week should be interesting, since it will be the last week of the month.

Posted July 25, 2014 by edmcgon in Music, Open Thread

Ed’s Daily Notes and Traders Corner for July 25th   20 comments

I am being lazy today and combining my morning posts into one.

The S&P 500 levels to watch today:

UPSIDE: 1989 (July 23rd’s high), and 1991 (July 24th’s high and the all-time high and the top of the Bollinger Bands).
LAST CLOSE: 1987.
DOWNSIDE: 1972-1986 (20 data points and the 20 day moving average), 1968-1969 (2 data points and June’s high), 1965 (3 data points), 1962 (July 1st’s low), 1959-1960 (3 data points), 1955 (July 17th’s low), 1954 (bottom of the Bollinger Bands), 1952 (July 10th’s low), and 1944 (50 day moving average).

S&P 500 Daily Momentum: Bearish
S&P 500 Daily Overbought/oversold: Neutral (leaning overbought)
S&P 500 Weekly Momentum: Bullish (weakening)
S&P 500 Weekly Overbought/oversold: Overbought
S&P 500 Futures: Negative
Overall: That was a short bull move! The top of the S&P 500′s Bollinger Bands are providing firm resistance, as the 1972-1986 range seems to be providing firm support. We may see another run at the top of the BB’s today, but I wouldn’t be surprised to see the S&P 500 close down in the 1972-1986 range today.

And now for the news…

Wall Street Journal: Google’s New Moonshot Project: the Human Body

Google Inc. has embarked on what may be its most ambitious and difficult science project ever: a quest inside the human body.

Called Baseline Study, the project will collect anonymous genetic and molecular information from 175 people—and later thousands more—to create what the company hopes will be the fullest picture of what a healthy human being should be.

The early-stage project is run by Andrew Conrad, a 50-year-old molecular biologist who pioneered cheap, high-volume tests for HIV in blood-plasma donations.

Dr. Conrad joined Google X—the company’s research arm—in March 2013, and he has built a team of about 70-to-100 experts from fields including physiology, biochemistry, optics, imaging and molecular biology.

Other mass medical and genomics studies exist. But Baseline will amass a much larger and broader set of new data. The hope is that this will help researchers detect killers such as heart disease and cancer far earlier, pushing medicine more toward prevention rather than the treatment of illness.

“With any complex system, the notion has always been there to proactively address problems,” Dr. Conrad said. “That’s not revolutionary. We are just asking the question: If we really wanted to be proactive, what would we need to know? You need to know what the fixed, well-running thing should look like.”

The project won’t be restricted to specific diseases, and it will collect hundreds of different samples using a wide variety of new diagnostic tools. Then Google will use its massive computing power to find patterns, or “biomarkers,” buried in the information. The hope is that these biomarkers can be used by medical researchers to detect any disease a lot earlier.

From an objective standpoint, this is fascinating. As a Google investor, I love how they are looking in different areas well beyond their expertise. They may get nothing from it, or they might create something beneficial to mankind (which could come with lots of dollar signs attached). Either way, I am pleased with my investment.

Market Watch: Greenspan says bubbles can’t be stopped without ‘crunch’

The article above is a must-read interview with former Federal Reserve Chairman Alan Greenspan. Whether you agree or disagree with him, his views are intriguing.

July 24th: Ed’s Daily IRA Summary   Leave a comment

I made my little daytrading profit this morning, and thought to myself, “Oh well, it may not beat the indexes, but it’s still a profit.” Little did I know how flat today’s crazy market would finish:

Ed’s IRA: 0.07%
DJIA: -0.02%
Nasdaq: -0.04%
S&P 500: 0.05%

Posted July 24, 2014 by edmcgon in Portfolio, Open Thread

Traders Corner   18 comments

The S&P 500 levels to watch today:

UPSIDE: 1989 (July 23rd’s high and the all-time high and the top of the Bollinger Bands).
LAST CLOSE: 1987.
DOWNSIDE: 1972-1986 (19 data points), 1971 (20 day moving average), 1968-1969 (2 data points and June’s high), 1965 (3 data points), 1962 (July 1st’s low), 1959-1960 (3 data points), 1955 (July 17th’s low), 1953 (bottom of the Bollinger Bands), 1952 (July 10th’s low), and 1942 (50 day moving average).

S&P 500 Daily Momentum: Bearish (weakening)
S&P 500 Daily Overbought/oversold: Neutral (leaning overbought)
S&P 500 Weekly Momentum: Bullish
S&P 500 Weekly Overbought/oversold: Overbought
S&P 500 Futures: Positive
Overall: This bull looks like it has at least another day in it. However, with the S&P 500 sitting near the top of the Bollinger Bands, we have a speed limit on upward moves.

Happy Birthday ETS! Ed’s Daily Notes for July 24th   14 comments

Birthday cat2

On July 24, 2010, I put up the first post for this blog. 4 years later, it is still moving along nicely. As always, I thank all of you for making this a worthwhile endeavor. Happy birthday folks!

Bloomberg: Buffett’s Stock Gauge Seen Outdoing Shiller’s

Market Value

Warren Buffett’s favorite stock-market ratio is a more telling indicator of the outlook for share prices than one developed by Yale University’s Robert Shiller, according to a newly revised study.

The CHART OF THE DAY shows the market value of U.S. companies as a percentage of gross national product before inflation, using data compiled by the Federal Reserve and the Commerce Department. In a 2001 article for Fortune magazine, Buffett wrote that the ratio was “the best single measure of where valuations stand.”

A similar indicator, based on non-financial companies and gross domestic product, was cited in the study. The barometer was compared with Shiller’s cyclically adjusted price-earnings ratio, or CAPE, calculated by dividing the Standard & Poor’s 500 Index by average annual profit for the previous 10 years.

…The market value-GDP ratio works even better to forecast stock returns after adjustments for demographics and household income and spending, according to the study.

In my opinion, the market value-GDP ratio works because it reflects Fed rates. (It is nearly an inverse of this Effective Federal Funds Rate chart.) Yet more reason for the old adage, “Don’t fight the Fed.”

July 23rd: Ed’s Daily IRA Summary   3 comments

No daytrading today. I didn’t like the way the S&P 500 was moving.

Ed’s IRA: 0.00%
DJIA: -0.16%
Nasdaq: 0.40%
S&P 500: 0.18%

Posted July 23, 2014 by edmcgon in Open Thread, Portfolio

Traders Corner   39 comments

The S&P 500 levels to watch today:

UPSIDE: 1985-1986 (2 data points and the all-time high), and 1988 (top of the Bollinger Bands).
LAST CLOSE: 1983, inside the 1972-1984 (16 data points) range.
DOWNSIDE: 1968-1969 (2 data points and June’s high and the 20 day moving average), 1965 (3 data points), 1962 (July 1st’s low), 1959-1960 (3 data points), 1955 (July 17th’s low), 1952 (July 10th’s low), 1950 (bottom of the Bollinger Bands), 1940 (50 day moving average), 1924 (May’s high), 1915 (June’s low), and 1903 (100 day moving average).

S&P 500 Daily Momentum: Bearish
S&P 500 Daily Overbought/oversold: Neutral (leaning overbought)
S&P 500 Weekly Momentum: Bullish
S&P 500 Weekly Overbought/oversold: Neutral (leaning overbought)
S&P 500 Futures: Positive
Overall: Expect another positive opening. The S&P 500 should make another run at a new record today, but whether it holds remains to be seen.

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