≈ The Earth is my witness. ≈
The broad markets are living in turmoil. Emerging market too. As a consequence, many thoughts pass through my head all the time. One of them is the Buddha’s awakening scene in the 1993 movie “The Little Buddha”, directed by Bernardo Bertolucci.
Stories like Siddhartha’s enlightenment, described in the ancient scriptures, are inherently embodied with deep meaning, serving as an inspiration to us, mere mortals, through the eons.
Rise above the turmoil and be the person who’s on the outside looking in.
Many successful investors used this same approach. They don’t participate in the madness. They don’t fall into this black hole of irrational behaviour. This is something we as traders must aspire for. We should see this as a paradigm and drink from such wisdom.
“Ignorance was destroyed; knowledge arose; darkness was destroyed; light arose.”
Chart of the Day
IBOVESPA, 1 YEAR
The Bovespa Index (Ibovespa) is the benchmark index of about 60 stocks that are traded on the São Paulo Stock Exchange, the largest in Latin America. More than 50% of the Brazilian Stock Market is composed of money coming from foreign investors. Problems in other emerging countries, like the ones we saw in Argentina and Turkey, can contaminate, leading to major sell-offs. Add to the mixture the uncertainty derived from the most awaited presidential election since the end of the military regime and you have the chart above. Investors fled from Brazil and bought US Dollars like madmen until things settled down a little bit. In the end, rising above the turmoil and being the person who’s on the outside looking in has its benefits as the index is now hitting new highs.
Video of the Day
What is Delta?
Delta is the ratio at which an option premium changes when the price of the underlying asset changes at a $1.00 increment.
Today’s Lineup
Coaches Lounge 11am EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
Cashflow Club 8:30PM EST
Held every Thursday before Friday’s option contract expirations, this show helps you perfect your favorite cashflow strategies.
Halftime Report 12:30pm EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.
Tackle 25 Mastermind gROUP rEPLAY
If you missed last night’s show where Coach Greg Holmes went over his Tackle 25 picks on the current market or would like to watch it again, click the link below.
Market Recap 4:30pm EST
The Market Recap is designed to give you a quick overview of the day that was. While brief, this report is designed to cover all of the major events that drove the markets that day and help you plan for the trading day ahead.
