Hudson Metrics Ltd. and Lualdi Advisors LLC. at The London FOREX Show!!
Come visit our stands and don't forget to contact us for a free pass!
The next London FOREX Show takes place on Friday, 23rd February 2018, at the Novotel London West with Headline Sponsors FINECOBANK. Doors open at 9.30 am for this exciting one-day event and exhibition for retail fx traders. Providing access to independent training via the five independent fx workshops, a range of free seminars, the live Lunchtime Summit and an exhibition of product and fx service providers, the London FOREX Show is a "must-attend" event for all active fx traders in the UK.
January 4th 2018: We are Long General Electric (NYSE: GE) from 18.00
January 11th 2018 Trade Update: Take Profit @ 19.00
Terrible battery life is again front and centre for iPhone and iPad owners after upgrading to iOS 11.2.1 with some devices lasting just minutes in a full charge. It’s a mess and the sooner Apple gets off this iOS 11 rush-and-release strategy the better.
The Stock is currently trading around 169 after a down gap from around 174. No further action is taken so far but a short move could follow.
The Greater Fool Theory proposes that you can profit from investing as long as there is a greater fool than yourself to buy the investment at a higher price.
The Greater Fool Theory proves itself best at continuous bull markets, where everybody seems to rush in investments because of the high momentum of equities. But as Sir Isaac Newton noted “Every thing that goes up must come down” readjusting the investment to its true value.
This means that you could make money from an overpriced stock as long as someone else is willing to pay more to buy it from you. Eventually you run out of fools as the market for any investment overheats. Investing according to the greater fool theory means ignoring valuations, earning reports and all the other data. And Ignoring data is as risky as paying too much attention to it; so people ascribing to the greater fool theory could be left holding the short end of the stick after a market correction.
Manias or Bubbles are a true example of The Greater Fool Theory Bubbles had not been a one time deal in the stock market’s history, but we seem to “rush in” the hype every time we see the opportunity to make a quick buck.
The Risk involved by buying any sort of investment for the sole reason that it increased drastically in momentum is nothing but absurd. Only few lucky investors get out of the rush profitable, leaving the majority of investors holding investments too highly overvalued it becomes hard to turn them into a profit and sometimes they are even forced to default of the investment.
And if you haven't learnt the lesson in 2008 you can always jump in the Bitcoin mania right now to test The Greater Fool Theory in person.
Below a chart of APPLE (NYSE: AAPL) that shows how to enter a trend maximizing the profits while keeping an ultra low risk level.
Some people like to refer to the financial markets as "Random" environments. It is understandable. After all, what do people do when they do not know something? Simple. They lable it as "bad" or "risky" or any other negative word they can think of. Luckily for me I grew up with a very limited vocabulary in terms of negativity.
My idea of Risk is the following: "Risk comes from not knowing what you're doing." - Warren Buffett.
But what happens when you do know what you are doing? What happens when you know something more than the average Joe? What happens when you are in control of Risk?
The image below shows a perfect example of being in control of risk. A perfect example because it shows that the markets are everything but a Random Walk. On the contrary, the financial markets are a very well organized environment for an elite of investors who are lucky enough to know what they are doing.
The IPC Index is suggesting a Buy Long trade on Ferrari (NYSE: Race).
We are Long from 104.50
Russell Sage was an American financier who played a part in organizing his country’s railroad and telegraph systems. Born on August 4, 1816 in Verona, NY, Sage’s first job was as an errand boy in a brother’s grocery store in Troy, New York. In his spare time he studied bookkeeping and arithmetic, and he began trading on his own. When he was 21, he used his profits to buy out the store of his other brother, Elisha Montague Sage. He sold the grocery store to open a wholesale grocery business in Troy in 1839 and made enough money to start a Hudson River shipping trade in groceries, meat, grain, and horses.
As a delegate to the Whig Convention of 1848, he supported Henry Clay. He served two consecutive terms in Congress (1853–57). Sage had lent some money to the La Crosse Railroad in Wisconsin. To save his loans, he advanced more money and, in 1857, he became vice president with a major share of the stock. When the railroad extended into the Chicago, Milwaukee and St. Paul system, Sage made a profit on his investment.
In 1863 he moved to New York City and gave his attention to stock and finance. He also helped, along with his ally, Jay Gould, to organize the Atlantic & Pacific Telegraph Co. In 1872 Sage originated stock market “puts and calls,” which are options to buy or sell a set amount of stock at a set price and within a given time limit. By manipulating securities, he and Gould gained control of the New York City elevated lines in 1881. Sage lost on the stock market only once, in the panic of 1884. He lost $7 million and never again dealt in puts and calls. Toward the end of his life Sage was also a moneylender with as much as $27 million loaned on call at a time.
In 1891 a man named Henry Norcross threatened to explode dynamite in Sage’s office if he was not paid $1.2 million. Sage refused and survived the explosion, which killed Norcross.
Sage’s fortune at his death was estimated at $70 million. The Russell Sage Foundation was established in 1907 by his widow (his second wife), Margaret Olivia Slocum Sage (1828–1918). She also founded the Russell Sage College and built a new campus for the Emma Willard School, both in Troy, New York.
"Our scope is to bridge the knowledge and technology gap between the banking world and investors. We serve our scope by eliminating any wall, any fee and any conflict of interest, to respond fully and unconditionally to their search for Alpha.” — Kings Of Wall Street
The Data Problem
Quality of information is usually a guiding principle for effective investment strategies. But the main issue today in the markets is the massive excess of data, which makes extremely difficult for investors to see the reality of things. In this data-saturated world, wealth management firms are often tempted to opt for the shell-shock approach, making it almost impossible for their clients to distinguish between the absolute and the irrelevant.
The Behavioural Problem
The next crash will be just as bad, if not worse, than the last one. Nothing has been learned, and nothing has been changed. The most basic of human behaviors, the tendency towards moral hazard has been completely overlooked by the federal institutions (cryptocurrencies are only the last example). Once again, those federal institutions, entrusted with so much power, have been exposed as being rather intellectually shallow, or at least devoid of common sense or common utility. The very same federal institutions that could not and did not see that a housing bubble was forming are also equally complacent about corporate bond yields touching all-time record lows right down to CCC junk that sits right next to default.
The media has always been susceptible to enthusiasm and fear. And using the media’s speculations as a guide to action would necessarily mean missing buying at the bottom and selling at the top. To accomplish those return-producing actions, it is up to the investor or to his advisers.
What makes the investing task harder now is that the media reports are, nevertheless, suspect and useless. Therefore, the investor’s responsibility is even greater today. It is an everyday task to avoid being misled.
The (Possible) Solution
Investors are on their own in the war for Alpha.
The solution is simple. And it can be defined as Technological Excellence. Technology is in fact a great equalizer, eroding the competitive advantage of even well-entrenched firms and propelling others to the forefront. It plays a major role in our industry structural change, as well as in creating new industry standards.
Italian car maker Lamborghini has chosen a top event to introduce the new Aventador S Roadster at the Frankfurt Auto Show. Improved aerodynamics and mechanics but also new colors!
The Aventador S Roadster is the only convertible equipped with a mid-rear engine from Lamborghini: the famouse 6.5L V12 Super Sport that delivers 750ph and is able to reach an impressibe top speed of 350km/h and 0 to 100km/h in only 3 seconds thanks to the ISR seven speed transmission.
The removable, hardtop roof panels weigh less than 13 pounds , and come finished in a standard matt black carbon fiber, with an optional high-gloss black finish, as well as a number of other Ad Personam color options. A Y-shaped engine bridge runs from the back window to the rear of the body, and combines the body color with matt black painted carbon fiber engine hood blades. A transparent bridge option can be added, allowing that monstrous V12 engine to be seen by the world.
If you feel the need for speed the Aventador S Roadster can turn heads around you for 374,660$, not including taxes.
Hudson Metrics will deliver a new high-freq algorithm able to spot market tops and bottoms with extreme precision.
The Algo will be available for HudsMet's institutional clients from January 2018.
As advised on November 16th we are Long Kraft Heinz Co (NASDAQ: KHC) from 78.75 with the American stock now traded at 80.98 (+2.68% today).
December 12th -Trade Update: Trade Closed in Profit at 81.85.
Recent Long Signals on Sony Corp (NYSE: SNE) triggered by the IPC index by Hudson Metrics.
A recent Long signal on Tesla Inc. (NASDAQ: TSLA) . We purchased the American stock at 298.50 using the IPC Index by Hudson Metrics.
The American company, run by CEO Elon Musk and based in Palo Alto, CA, has just unveiled the new semi-autonomous electric Semi big rig with a 500-mile range, which will start at $180,000.
The 300-mile version will start at $150,000. The expected Founders series price is $200,000. Production of the highly-anticipated Semi is expected to begin in 2019, which a base reservation cost of $20,000. Retail giant Wal-Mart Stores Inc. WMT, +0.55% and trucking company J.B. Hunt Transport Services Inc. JBHT, +0.14% have said they have preordered the Semi. Tesla's stock slipped 0.1% in morning trade. It has eased 0.9% in the week since unveiling the Semi, while the S&P 500 SPX, +0.21% has gained 0.9%.
The son of Cornelius Vanderbilt, William Henry Vanderbilt was a railroad magnate who doubled his family's fortune.
Born on May 8, 1821, in New Brunswick, New Jersey, William Henry Vanderbilt was the main heir to his father, Corneilius Vanderbilt’s vast estate. A railroad magnate himself, William Vanderbilt doubled the family fortune by expanding their railroad network.
William Henry Vanderbilt was born on May 8, 1821, in New Brunswick, New Jersey. He was one of 13 children and the oldest son born to Sophia Johnson and Cornelius Vanderbilt—arguably the nation’s most imposing industrialist.
For a long time, William was often a source of disappointment to his father, who felt that his son was too frail and lacked ambition. In his teens, William was sent off by his father to work for a rival business owner, Daniel Drew. The work proved to be overwhelming for the young man, and he soon suffered from a nervous breakdown. Frustrated, his father exiled William to a farm on Staten Island. Almost immediately, 19-year-old William was able to improve profits at the farm, and his father took notice.
The 1840s saw Cornelius Vanderbilt exert more control over the Long Island Rail Road. William was called on to reorganize the ailing organization, and just as he had done at the family farm, he turned the business into a thriving operation. Having now ingratiated himself to his father, William became a key figure in the family’s railroad empire. By 1864, he was vice president of key railways in New York, and would later help expand his family’s influence in the industry. In 1877, Cornelius Vanderbilt passed away, and the Vanderbilt organization was turned over to William.
William carried on his father’s work by expanding railroad operations and overseeing the formation of the New York Central System. His acquisitions included railroads serving Chicago, Cincinnati and Indianapolis, among countless other cities. William retired in 1883 due to ill health. He died two years later, just eight years after his father’s death. In his relatively brief time at the helm of the Vanderbilt organization, he had doubled the family fortune from $100 million to $200 million.
Recent Long Trades on Vale SA ADR (NYSE:VALE) triggered by the IPC index by Hudson Metrics.
Recent Long Trades on Amazon.com, Inc. (NASDAQ: AMZN) triggered by the IPC index by Hudson Metrics.