Connecting the dots and seeing the big picture

Connecting the dots and seeing the big picture is part of successful trading and it’s especially important to our approach of Revolution Investing. There is a lot of action, momentum, excitement and news out there that I need to touch on here today, so let’s jump right in.

First off, are there any bears left? Are there any bears left who aren’t scared to death right now? This year our “Who’s More Scared Right Now, The Bulls or The Bears?” poll has never swung to 90% plus margin and that’s helped keep us steadily bullish and riding the huge rallies in our momentum stocks all year. It’s time once again to ask you guys that very question then and let’s see what we end up with. Note that the Investor Intelligence Bull/Bear Survey is “off the charts” right now.

So, the upshot is that it’s time for another round of Wall Street’s favorite TV Game Show, “Who’s more scarred right now, the bulls or the bears?” You can email me you answer at support@tradingwithcody.com, or leave a comment below or just go take the poll itself.

The comments and questions I’m seeing about Facebook today underscore just how wildly strong and momentum driven the markets have been all year and continue to be right now. Remember when I wrote articles called “Bring on the Facebook hate” and outlined why all that Facebook hate was so bullish. Facebook love ain’t bullish.

The problem with comments such as “Facebook 55 by year end? maybe 55 by the end of the day haha” and “Does $FB hit 60 by year end?” is the fact that those are not the kind of comments you get at a bottom. I still don’t think the Top Of The Bubble is in yet and won’t be for another year or two, but I don’t like the lack of fear out there right now.

I am starting to dig into Cisco again for the first time in a few years now that it’s no longer a favorite. I asked Robert Marcin, the best value investor I know, to take a look at it too. That is, Cisco is now yielding 3-4x what Treasuries do, has $5-6 net cash per share, and a 10 P/E.

Marcin’s answer – “I’ve been working on Cisco myself. major structural headwind with transition to SDN (Software-Defined Networking) over time. all depends on how csco handles that. probably margin pressures but co had lots of strengths. i have traded it in past, but now i am more concerned than before about biz model. lets see how low stock gets in correction.

The Definitive History of Bitcoin | Visual Capitalist – Terrific look back at the ups and downs and risks and rewards along the way for bitcoin users. Bitcoin’s having serious resistance troubles at $1000. Wouldn’t be surprised to see it hang around $500-800 for a while, at least until there’s some sort of new development or endorsement or something like that to drive the price upward.

Don’t believe everything you read, especially on a Stock Market Social Network – “Just as with message boards in their heyday, social investing sites and the information found there need to be taken with a good-sized grain of salt. While some users are posting legitimate news and opinions, there are those out there with more nefarious intentions. Investors should take care to use them for supplemental, not primary, news and opinions.”

On that note, I want to remind you about why you should Never Buy a Penny Stock. So many retail investors continue to fall for the penny stock promotion scam. Don’t be one of them. For every penny stock trader who’s currently a millionaire such as this trader who turned $1,500 to $1 million over the last three years of this Bubble Blowing Bull Market, (note the word “currently” by the way), there are thousands of retail investors who’ve lost all their money on every penny stock they’ve ever touched.

(UPDATE AUGUST 7, 2017): I just got an email from another penny stock promotion company that wants me to help promote their penny stock promotion service by making a change and putting their name in this article. I’m guessing they didn’t bother reading what I actually wrote in here warning people against penny stock promotions. Here’s their email:

Question About Your Article on Penny Stocks

Sarah Smith <sarah@personalincome.org> 8:05 AM (10 minutes ago) to support Hi , I know you’re busy so I’ll cut right to it. I’m reaching out to high-quality sites with pages featuring resources on penny stocks. I’d like to pitch our epic 2,000-word guide for inclusion in your post:http://tradingwithcody.com/2013/12/16/connecting-the-dots-and-seeing-the-big-picture/ I realize it’s a pain for you to make changes, so I’d like to attempt to return the favor by sharing your article and your latest content to our 7,000+ Twitter followers. If interested, you can check it out here:

5 Pro Tips on How to Make Money With Penny Stocks
https://www.personalincome.org/how-to-make-money-with-penny-stocks-blah-blah/ Thank you very much! Looking forward to your response. Best regards,

Okay, Cody back in real-time again as part of this update in August 2017. These guys wanting me to promote their penny stock promotion service should serve to you as yet another REMINDER: AVOID PENNY STOCKS AND PENNY STOCK PROMOTION COMPANIES! END OF UPDATE)

And on that note (let’s make this a song!), I’m going to give a presentation about Revolution Investing and Everything You Need to Know About Investing at the upcoming Money Show Expo in NYC on Tuesday, February 18, 2014 at 10:30 am. In the presentation, I will approach this broad topic with lots of details and explanations and real-life examples of trying to become a successful investor or trader, in a way that will be helpful for the average Joe, but also touching on key topics that pros can use too. Registration for the expo and attendance to my presentation are free.

Yes to phones on flights, no to yakking on them at 30000 – Why should the government enforce a cell phone ban on calls? Let the company use it as a competitive advantage. It’s NOT a government issue SINCE not a safety issue. How can you consider yourself a free market capitalist if you’re constantly wanting the government to legislate social and business laws?

Some holiday gift ideas for the trader or investor in your life – Ideas from yours truly ranging from 99 cents to $700.

Finally, a paranoid’s random thought of the day – Does the fact that I use the thumbprint scanner on my Apple iPhone 5S mean that my print is now on file at the NSA? Dumb question? As for trading it,  $AAPL sure has been acting like it’s about to join the bubble blowing bull market again.