King of the Hill or what really matters

This is no time for jokes, Boomhauer. This tornado’s already classified at level 2 on the on the fujusaki scale. A storm that strong will send an egg through a barn door. Two barn doors if one of ’em is open.- Dale from King of the Hill

Good morning and welcome back to the playground where you better believe that being king of the hill still matters more than long-term returns to most of the people you’re trading against.

The markets are down fractionally and tech’s down fractionally worse than the broader markets while the financials are down fractionally less than most of stocks. Coming this week, is the Fed’s new “more transparent” report — which will lead to more speculation about what the meaning of the new transparent data is. Think about it this way — we’ll see endless pundit and trader speculation this week about what expectations the Fed governors have about the markets and how their expectations will fuel market action which could maybe drive economic activity which might or might not someday sooner rather than later impact what the Fed governors will say they expect about the economy and how they should react to the future potential economy if things play out sort of like they say they are expecting in the report today. You’ve heard me before implore you guys to ignore this type of noise and I’ll implore you once again to stay focused on what matters — getting more trades and investments right over time than wrong. You think gaming that kind of bureaucratic noise from the Fed’s report this week will help you get there? You think you have an advantage over the guys at Goldman, JPM, and the other banks who are advising the Fed about the economy, the bond and treasury markets? No, so don’t try to pretend otherwise. This is part of the noise and volatility and risk that we have to deal with as stock market participants in 21st century United States.

I’ve got some trades and lots of and lots of explanations and clarifications about the portfolio and our approach, tactics, strategies and more coming your way this week. Let’s stay focused.

Dale explaining the tornado threat