Value of Perfect Information

Name: BostonWealth

Email:

Web Site: http://www.bostonwealth.net

Bio: Boston Wealth Management, LLC is an investment advisory firm providing portfolio management and financial planning services as well as stock markety commentary along with fundamental and technical anlayses on the financial markets. 1982 Graduate University of Kansas 1989 Graduate George Washington University (Master's Degree) Boston Wealth Management provides the following advisory services: Financial planning services Portfolio management for individuals and/or small business

Posts by BostonWealth:

Stock Price Analysis

Written by BostonWealth
March 6th, 2010 at 2:19 am

Click Here for Presentation >>>>>>>>>>>>>>  Stock price  Do not hit the enter button to continue, instead click the “next” button on the bottom right when watching the presentation.





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Prescient trading

Written by BostonWealth
February 26th, 2010 at 1:50 am

Presceint trading today





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Positions with potential for gain/loss

Written by BostonWealth
February 25th, 2010 at 1:17 pm





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Up up and away! 10.6% return vs. -.75% on the S&P 500 so far this year

Written by BostonWealth
February 19th, 2010 at 7:38 pm

Up up and away!

10.6% return vs. -.75% on the S&P 500 so far this year; anyone looking for an investment adviser! Lol! I really am one!

http://www.bostonwealth.net/managed-assets/





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Home run on SPX options!

Written by BostonWealth
February 19th, 2010 at 11:21 am



http://www.bostonwealth.net/2010/02/18/potential-for-300000-profit-in-the-morning/



So calculation from yesterday’s close!

Sold to open

SPX 1090 $17.80-$11.98 = $5.82 X 2,700 = $15,714
SPX 1095 $13.00-$6.98 = $6.02 X 9,000 = $54,180
SPX 1100 $7.50 -$1.98 = $5.52 x 3,000 = $16,560

Total Gain: $86,454

Bought to open

SPX 1115 $.45 x 9,000 = -$4,500
SPX 1120 $.40 x 2,700 = -$1,080
SPX 1130 $.05 x 3,000 = -$150

Total Loss: -$5,280

Change from close yesterday to open today as expiration as European Style Options: + $81,174



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Potential for $300,000 profit in the morning!

Written by BostonWealth
February 18th, 2010 at 5:53 pm



They are European styled.. so when all 500 SPX stocks open.. that is the price you get! expires right after they all open! How about them apples!



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MortiES’ Premium: Now offering 30 day free trial period!

Written by BostonWealth
February 10th, 2010 at 8:00 am

TRY THE THIRTY DAY FREE TRIAL PERIOD!!!

Subscribers to MortiES’ Premium Content will have access to analyses of the e-Mini S&P (ES) authored by “Mortie”. Analyses and comments will be posted at times during the day and/or night that is deemed timely by Mortie. Specific buy and sell recommendations will not be given.

Thirty day free trial period followed by monthly subscription to Premium Content. Your subscription will automatically be renewed every thirty days and your credit card billed at the end of the trial period.  Cancel before the end of the trial period to avoid billing for the monthly subscription. Monthly subscription runs for a month from the day you subscribe, regardless of the day you start,  and is not prorated.  



Feb. 10, 2010:  Track Record will be updated shortly

Click to see MortiES' Track Record ~ Week of October 26, 2009

I am selecting this post for my Track Record this week because it was extremely accurate. Unfortunately, I changed my mind in mid-stream and only followed half of the analysis. A track record should show when we take wrong turns in the road also. The analysis on this post, however, was excellent and demonstrates to power of Elliott Wave analysis. For this reason, it is worth restudying.


ES 120 Minutes
This chart was my top scenario on Wednesday night for the near-term trading sessions. My primary scenario is identified on the chart as a bounce to one of two targets – 1055 or 1065 – and a drop to a level below Wednesday’s close. Wave analysis was predicting that ES would break below two channel trendlines after a W4 rally. Trading Thursday was nailed with this analysis, as ES came within one point of the maximum target. Friday, ES did exactly what my analysis predicted. Unfortunately I fell in love with a channel and changed my expectation for Friday and predicted follow-through to the upside. I was wrong. I should have trusted my analysis and not my instincts.




ES 120 Min.

This chart is the updated 120 Min. chart. Let’s see what happened. A picture is worth 1,000 words.



Click to see MortiES' Track Record ~ Week of October 19, 2009

This was a wild week of trading. So how did Mortie do? I made some calls this week that went against conventional wisdom. This week I am including in my track record, my Premium Posts for Wednesday’s and Thursday’s trading day. I am preparing this early because MailChimp, who sends the emails, is going to be down for upgrading. The following images are of commentary and charts that I posted on these two successive nights. Nobody claims to be perfect in their analysis, but see if these perspectives would have been useful in your trading.

Commentary 20Oct2009 on Premium Site



ES 60 Minutes
Below is the chart that went along with the commentary above. As you can see, I was looking for a drop to 1075-76 as my primary target and 1070 as my secondary target. ES tested our resolve by rallying to within two ticks of the Globex high before heading down to fulfill our scenario. If you check your charts, you will see that ES hit the second target on my chart, the maximum-typical W4 retracement of W3, before heading up Thursday. My arrows don’t tell how long it will take to fulfill my scenarios, or what “crazy” path they might take to get there. They indicate the general direction of the market and high-probability targets. Today’s action (Friday), IMO, means we are having a complex correction. No trader can predict with certainty the actions of the market because it is all about probability. But by taking the highest probability scenarios, this Premium Site has been nailing a most of these moves. This site is for traders, not perma-bulls or perma-bears. At MortiES’ Premium Site we have experienced traders willing to pass on their trading skills to Newbies. At $1.67 a day for analysis or $2.50 a day for live commentary and interaction with other traders, you won’t find a better deal on the internet. The chart below was posted Tuesday night for Wednesday’s trading.



Commentary 21Oct2009 on Premium Site
After nailing the bottom of what I was calling W4, with my secondary target, I was faced with a decision. The conventional wisdom on the internet, and among traders, was that we would see another big down-day. It was being said that this was the first down-day from a double top in many leading indices. But that didn’t fit my count. And, after all, ES hit my target for a W4. So I went with my count. After such a dramatic drop on Wednesday afternoon though, many subscribers on the Premium Site were doubting a recovery from such a severe drop. But we all held together and traded the upside. Good decision! Friday, ES decided that it wants to go higher ~ the hard way. But my upside targets remain the same. Because we don’t trade our opinions, but trade the market, we had a tough day trading today. Some of us were a little green and some a little red. We advocate the use of stops and waiting for high probability setups to present themselves.

Below is my commentary from Wednesday night’s post for Thursday’s trading day.



ES 200 Min. Globex
This chart below was posted Wednesday night for Thursday’s trading day. Note the character of the consolidation I was expecting before heading up. Wave C was the big drop and it ended with a little W4 beginning. To be true to EW analysis, I expected a minimal W4 and an almost truncated W5 before a reversal of ES. Look at your own charts and review what ES did. You will see that it reversed at 1070, and looked a lot like my projected path. As I write this on Friday morning before the open of trading. ES has rallied to about 1095 during Globex. That is a good start for my scenario! But as I mention in my post Thursday night, ES is overbought and will have to work that off. Of course, it did that in dramatic fashion today. This weekend I will be analyzing the charts for an opinion on next week’s trading.



Value of Perfect Information: Perfect Information allows one to make the best decisions possible. It is not resident in any one person. I only bring a small piece of information to the table as we together seek to uncover all that can be known about this market. Your participation is valued in this quest.

Click to see MortiES' Track Record ~ Week of October 12, 2009

I could post any day last week for an example of my track record this week, but Friday may be the most notable and informative.

Some are still not convinced of the practical use of Elliott Analysis for trading. Maybe this post will help convert the skeptical. There’s a lot of good stuff for wavers and want-2-B-wavers in this Newsletter. And, of course, some good old fashion marketing. MortiES’ Premium Site has been hitting home-runs on a regular basis. I could have picked any day last week to post this weekend, but Friday stood out as a day of large moves and counter-moves. Also, we had great interaction and commentary by the subscribers. Additionally, I was more actively involved in commentary and analysis during the day, as I was demonstrating to subscribers the power of Elliott Analysis and some fibonacci techniques.

The first chart is my premium post for the EOD Thursday. I got bold on this call for reasons explained in detail in my post, and was calling for a W3 top to this current move from 2 October.

Here is the introduction to my comment Thursday night.



And here is the chart I posted on the Premium Site.



Now let’s see what the market did on Friday in the chart below. So you know anyone else who made that call? I traded Globex and grabbed a quick 11 points before 10 am.



Not a bad call! But what about the rest of the day? How did Elliott Analysis guide us through the changing landscape? The next chart below is an intraday Globex Chart that I posted as the drop Friday was reversing off our target. I modified the count for the rebound because of the structure of the drop. It was a 5 wave impulsive move, which meant it couldn’t be the end of W4 and had to be Wave A of W4. so I gave targets for Wave B which pretty well nailed the top later in the day.



The next chart below is the Globex chart of my actual trades that I posted live on the premium site. Posting trades is not part of the deal with the Premium Site. But I will do it occasionally for teaching purposes or when it’s a real no-brainer (high probability trade). I will post changes in counts that I see and new targets during the day. When I’m busy during the day with my practice, there are other excellent traders who are posting their trades and giving excellent commentary. This site is hot!

Take a look at the chart below of my actual trades that were posted live, and see if Elliott could benefit your trading account. If you had traded the predicted turning points on my analysis on Friday, you would have made 25 points. My posted trades netted 20 pts. because of 2 stop losses. And I took profits along the way while trading multiple lots. On a daily rate equivalent, this day’s analysis would have cost a whole $1.67 for your subscription. Why not try us for a month and see if its not time and money well-spent. The chart below is self-explanatory. We certainly don’t promise a fun-day like this every day, but even the boring day’s this week followed our scenarios. In fact, I called turns on these days even better than Friday, many to-the-penny. The chart below is part of my Weekend update for my premium subscribers. It is more of a review. because things got a little hectic on Friday, and some may have lost their way with all the comments being exchanged during the stress of battle. The commentary by subscribers was great! This is not a dull site like the previous one where there was almost no interaction. Review like this are useful to me as well as my subscribers. We all can learn by studying our trades! I’ve had many tell me that I’m not charging nearly enough for a subscription to the premium site. For now, I want to build a site that is second to none. I want to attract Newbies and experienced traders, and I want to see Newbies become the experienced traders of the future. For my current subscribers who also read this newsletter, I won’t be raising fees on any of you. You had faith to help me kick this off, and your support is appreciated!



So go ahead give it a try and subscribe! Click the “Sign Up” button below to get started!




Click to see MortiES' Track Record ~ Week of October 5, 2009

This is another example of a call made by Mortie. It was a quick post before heading off for some routine medical tests. I was watching Globex during the night and had an idea what would happen at the opening. This post nailed the action for the morning and would have more than paid for a year’s subscription if traded. I can’t guarantee that all my posts will be this accurate, but we have been doing well for months now.

This is the actual post I published to the site on October 8th before the regular session opened.



This is what happened that day with the market.



Click to see MortiES' Track Record

This first series of charts are posts that cover the period highlighted yellow in the 3rd chart. These are posts I published at the time of significant market turns. They will give those unfamiliar with my charts and comments an idea how Mortie has performed at these important times in ES’s recent trading history. These are only the charts and not the comments that accompanied them. The charts are well annotated though, and are self-explanatory. Where there are multiple possibilities indicated by arrows, my preferred scenario was indicated. I like to include secondary market paths, so my subscribers will not be caught unprepared if my primary scenario does not work out.

This first chart is Wave A of Daily W4. The time frame is early to mid June 2009. Because this wave was impulsive (5 waves), I was expecting an ABC (Zig-Zag) Wave B to follow. See the count on the next two charts. At this point, Wave A and B were complete, and ES was in Wave C of Wave B. Specifically I was predicting a final minor W5 to complete Wave C of Wave B (red arrow). I drew the exact level I was expecting for the end of Wave B on the chart. This was hit to the penny and the market reversed, but with a crazy path that required nimble trading. It could not have been predicted by anyone!



This chart is a perfect example of how ES likes to get to an “expected” target in an “unexpected” way. My comments always include the caveat to trade the market and not your opinions. ES is trying to shake off the retail crowd before getting to its target and heading down in a Wave C. That was tough trading, but it helped to know where the market was eventually going. Arrows appear linear on the chart but we realize the market does not move in linear paths.



This chart is a daily chart that shows the section of the market we are analyzing above. I want to be sure everyone is oriented correctly. It was not a previous posting.



THE END OF DAILY WAVE 4 ~ AT THE TIME, VERY CONTRARIAN.

Here was one of my most controversial calls that went against conventional wisdom. At the time, I posted it as “MortiES’ Big Call!”



This is for orientation of the preceding post on the daily chart. It was not a previous posting.



MY LONG-TERM PERSPECTIVE AFTER THE END OF W4 AS I CALLED IT BACK THEN

After my call on the end of W4, the market began a rally. It was at the point of the rally on the next chart that I was hearing that this was a retest of the Head of the H&S pattern. Most traders were calling for a downturn at this point. Look what I predicted, and how I predicted the market might move on its upward journey. Compare with the second chart, which is an up-to-date chart showing approximately the same perspective. Not bad! Will the rest of the prediction work out. Stay tuned!



And where are we today? This also was not posted, but is shown to visualize how the market behaved after posting my primary scenario.



I didn’t select these posts out because they were accurate, I selected them because they were at major turning points in the market.

Since going to a paid site, I have a smaller group following my posts. I’d rather be working closely with a couple hundred subscribers who appreciate the efforts that go into analyzing a market, than spending hours for a couple thousand who take that labor for granted. I know there are many out there who have not yet subscribed who would benefit from these analyses.

I thought that this site would appeal mostly to newbies, but I have been surprised to find that experienced traders are participating too. We have some outstanding traders on the site who are seeking to expand their trading knowledge and analytic skills. IMO, I learn as much from them as they do from me.

I don’t think any of our subscribers will complain about the analyses that we  have been providing. Also, interaction and comments have increased dramatically on this site, so much so that I have to post a comment cleaner here and there and we all benefit from this. Those of you who have been following me for a while know what my performance was in the past.

Since making my posts by subscription only, we have maintained or surpassed our past performances. Would they have helped your trading? Would they have helped you the equivalent of one point on one contract?

I wanted to show those who have been following me for a while, how we have been doing with out analyses. If you are an active trader of ES, I hope you can see the value in what we offer. Of course, if you just follow the market for interests other than trading, I wouldn’t recommend that you subscribe anyway. There is nothing magical about these analyses. My goal is to be consistent, and to be right a lot more than I’m wrong. If you’ve followed me in  the  past, you will know I’m not a consensus taker when forming an opinion. There is a lot of hard work behind my analyses. Why not try a subscription for one month, and see if it doesn’t return your investment many times over. If it doesn’t, you can cancel your subscription.

Go ahead give my analyses a try; click on the button below!



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Excellent analyses!



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S&P 500 here we come: 1250

Written by BostonWealth
January 27th, 2010 at 1:07 am

I like this count and it is reinforced by my ever expanding data and need to attain that “Value of Perfect Information”
Utilizing the information directly from S&P that can be found here:
http://www.standardandpoors.com/home/en/us/
Then click on the images below to see how to get to the excel spreadsheet after you register with S&P
Ok so how did I get to 1250 which should happen very soon with the exceptional good earnings reports coming up that I anticipate.
Ok.. look at the column that says Operating earnings bottom up for 2010 which adds up to $76.47 (this number is continuously changing as the earnings are fine tuned)
Bottom up:S&P covering Equity Analyst estimate for specific issue, building from the bottom up to the index level estimate
Top down:S&P estimate (Economics Dpt) incorporates models (economic, financial, policy), does not come down to issue

Over the last 20 year period the index traded at an average of 19.4 times earnings, but you have to discount that because it included a 12 years bubble; so taking a longer term average of around 15 times earnings is more realistic.
For the past 100 years the S&P 500 P/E multiple has been 16.37 times the trough earnings.
So taking $76.47 x 16.37.. and presto you get SP500 at 1251.

I have done a post in the past regarding operating vs reported earnings.. operating is what the bulls like to use…
The “As Reported” number tells us a lot more about the slings and arrows the company endured during the reporting period while the Operating earnings number tells us more about their gross earning power
When you hear the word earnings used by analysts, you need to understand the difference between the two types; “operating” and “as reported”.
When calculating the Price Earnings Ratio (P/E) for the S&P 500 or any stock for that matter, the E in the P/E is vulnerable to major manipulation because the accounting method used to derive the earnings can be misleading to say the least. The S&P 500 P/E ratio reflects the performance expectations of the stock market.
Just remember this:
Bulls use “operating” earnings which are inevitably higher
Bears use “reported” earnings, and as such, are inevitably lower

Bulls use forward “operating” earnings for the next 12 months.
Bears use the past 12 months of earnings to make their case. The advantage of that is obvious: it avoids the dependence on estimates of earnings going forward.

The all important major difference?

Bulls use “operating” earnings which exclude write offs.
Bears use “reported” earnings which include write offs. As such this is by far the gold standard or interpreting earnings because these write offs that consist of miscellaneous non recurring one time charge and expenses typically take place almost every year.
You might ask… well why isn’t Ben utilizing the data for reporting earnings! Simple! Because today and for this week I want to have my “Bull Cap” on!

The bulls use “operating” earnings which are also known as “pro forma” earnings
So the bears use “reported” earnings which is based on Generally Accepted Accounting Principles or “GAAP”

And this is how we get such a huge discrepancy between the bulls and the bears.



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A reason for bears to be happy

Written by BostonWealth
January 14th, 2010 at 12:11 am

A reason for bears to be happy.. see the divergence in the attached chart. The 50 day EMA on the NYAD is not confirming this uptrend.. sure someone will send or comment that the cumulative is still up.. I have used this indicator to my advantage in the past.. just one piece in the “Value of Perfect Information”



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What caused me to stick to plan and have profit of $27,000 today?

Written by BostonWealth
January 12th, 2010 at 12:35 pm

What caused me to stick to plan?



1. Smart/Dumb money at extreme
2. Equity Put/Call ratio at extreme
3. % of NYSE above 200 DMA near extreme
4. Divergence between NYAD and EMA 50 day

5. Max option pain on SPY had been much lower the last few days
6.. Sticking to plan that SPX 1142 was the high.. sure it overshoot.. but no pain ..no gain
7. My favorite magazine , The Economist, having the bubble cover



8. Most important: Mortie’s guidance  with Elliott Wave to give me the confidence.

9.  This on an account that started at $150,000 last week.

http://www.bostonwealth.net/2010/01/06/prescient-call/

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