Capitalogix

Are You Expecting More Selling - Or a Buying Opportunity

"Insider Selling Mounts as Markets Hit All-Time Highs" screamed the headline.

A glance at the charts showed that the S&P 500 Index tested below its 50-Day Moving Average for the first time in a long time.

Meanwhile, the Russell 2000 index experienced what technical analysts call a “Death Cross” ... where the near-term 50-day moving average dips below its long-term 200-day moving average.

 

 

What does it mean?

The "worry" is that this move is the beginning of a new bearish trend ... and the long-term moving average is seen as the new resistance level.

So far this year, small-cap stocks have underperformed their larger counterparts. Year-to-date, the Russell 2000 is down almost 3% while the S&P 500 has gained over 7%.

Moreover, the small-cap index has been weakening and is off almost 7% from its all-time high set at the start of July, while the large companies in the S&P 500 and the Dow Jones Industrial Average have been hitting new highs.

The main issue is that small caps are under-performing and traders wonder what that says about the strength and breadth of the recent rally.

Nevertheless, the last time the Russell 2000 formed a death cross in July 2012, no significant sell-off followed as the index recovered and continued an uptrend.  My guess is that this pattern would get far less media attention if it was named "Phlarg" or a "50/200 Crossover".

These are the types of "early warning signs" you should watch.  However, they are just early warning signs ... until they prove themselves to be more.

Here Are Some Links For Your Weekend Reading

Sometimes the solution to a tough problem is obvious.  Introduce ISIS to Ebola ...

 

 

Here are some of the posts that caught my eye. Hope you find something interesting.

 

Lighter Links:

• Ten Tips on Organizing Your Mind, from Dr. Daniel Levitin. (WSJ)
• IBM finally opens up its Watson Super-Computer to Researchers. (VentureBeat)
• Could the Difference Between Liberals and Conservatives Be Genetic? (Elite)
• When Selfies Won't Do. Glamor Shots Replace Selfies for Personal Branding. (NYTimes)
• Machine Learning Algorithm Studying Fine Art Paintings Sees Things Art Historians Had Never Noticed. (Medium)

 

Trading Links:

• Market Watchdog Warns on Danger of Cyber-Attack. (FT)
• Data Breaches in the U.S. [Infographic]. (Bloomberg)
• The World's Biggest Companies Have Amassed $7 Trillion In Cash. (BusinessInsider)
• NYFed Asks "Could The Dollar Lose Its Reserve Status?” (ZeroHedge)
• What Do You Think of Larry Page's Toothbrush Test for Google Acquisitions? (BI)

How funny would it be if Google was a real person you had to talk to?

 Everything you ask Google sounds a lot stupider when you actually ask Google.

Imagine how many people's Google search history is littered with typos, questionable queries, embarrassing visits to malware-infected websites, porn, Facebook, porn, Facebook, basic math questions a 6-year-old would know, juvenile jokes and so forth.

Now imagine if, in order to do those searches on Google, you had to talk to a real life person?

College Humor has posted a series of videos showing what it would be like if Google was just some guy in an office answering all of your life's questions?

 

 

It may be frustrating to be Google ... but it is so much more embarrassing to be ourselves.

Links to the prior two videos are here and here.

Here Are Some Links For Your Weekend Reading

Alibaba's IPO debut roared ... and its shares soared 38%. 

 

 

In many ways, the IPO was surprisingly big.

Here are some of the posts that caught my eye. Hope you find something interesting.

 

Lighter Links:

• Can Technology Really Change Your Habits? (FastCompany)
• The 10,000 Hours Myth: Practice Predicts Only 12% of Performance. (Spring)
• The Man Who Created The First Pop-Up Ad Says 'Sorry'. (TheVerge)
• Do Dogs Really Feel Shame and Guilt? (Psychology Today)
• China Says New Supersonic Sub Would Reach San Francisco In 100 Minutes. (Sploid)

 

Trading Links:

• Apple's Secret War Against Samsung is Working. (MacObserver)
• Microsoft Still Doesn't Get Why the iPhone Succeeded. (TUAW)
• The Dark, Disturbing World of the Visa-For-Sale Program. (Fortune)
• U.S. Hikes Fee to Renounce Citizenship By 422%. (Forbes)
• Here's How Much Aid The U.S. Wants To Send Foreign Countries In 2015, and Why. (INFOGRAPHIC)

Four of the world's most valuable internet companies are now based in China.

Four of the world's most valuable internet companies are based in China. 

 

 

 

$BIDU $JD $TENCENT $BABA -  via StockTwits

Related articles

Alibaba IPO will make it biggest internet company in China and third biggest in the world

Alibaba IPO is wake-up call for Silicon Valley

Gartner's Hype Cycle for Emerging Technologies

Gartner Group's latest Hype Cycle for Emerging Technologies is out. 

Last year, Big Data was at the “peak of inflated expectations.” 

This year, the Internet of Things is at the top of the hype cycle.  

A new entry to the Hype Cycle this year is “data science,” projected to reach the plateau in 2 to 5 years. It’s more a discipline for dealing with big data then a specific technology or set of technologies, so it’s interesting to note that big data is still considered by Gartner to be 5 to 10 years away from reaching that stage.  

 

Source: Gartner, August 2014

Gartner's Hype Cycle Special Report highlights “the four Nexus of Forces (social, mobile, cloud and information),” which were highly correlated with items that had changed most significantly on the peak portion of the Hype Cycle. Two trends Gartner called out especially as having an impact at earlier stages of the Hype Cycle were digital business and the Internet of Things.

The 2014 Hype Cycle for Emerging Technologies marks the 20^th anniversary of the report.  

 

For more, see this video, which talks about the Hype Cycle as a tool for tracking how innovations and their business impact evolve over time and what is new about the 2014 version.

 

The Wealthiest Individual In Every State [Map]

Take a look at this interactive map that displays the wealthiest person in every state. 

 

 

According to data from Forbes and Celebrity Net Worth, there are various paths to wealth.  For this group, the most common were:

• Entrepreneurs
• Heirs/Heiresses
• Widows

About half are founders of companies.

Here Are Some Links For Your Weekend Reading

Guess the "Ice Bucket Challenge" isn't for everyone ...

 

 

Here are some of the posts that caught my eye. Hope you find something interesting.

 

Lighter Links:

• Is Disruption Dead ... or the Status Quo? (DigitalTonto)
• Chinese hackers take command of Tesla Model S. (CNet)
• Why Mosquitoes Bite Some People But Not Others. (BusinessInsider)
• 21 Things You Didn't Know Your iPhone Could Do. (APlus)
• Why Pixar President Ed Catmull's New Book Is One Of The Best Reads On Creative Leadership. (Forbes)

 

Trading Links:

• The Hidden Costs of Cash . (Harvard Business Review)
• Marc Andreessen and Jim Barksdale on How to Make Money. (IdeaCast)
• Markets Aren't Immoral  (Bloomberg View)
• These Big Data Companies Are Ones to Watch. (Fortune)
• Why "Margin Debt" Is Meaningless In The New Shadow Banking Normal. (ZeroHedge)

Surprised Steve Ballmer Went Bonkers In His Clippers Intro Speech?

Here is how new Los Angeles Clippers owner Steve Ballmer introduced himself to fans in his introductory pep rally.

Ballmer, the former Microsoft CEO who's known for his emotional speeches, was quite excited.

He even gave the crowd his email address ([email protected]).

Here is the video.

 

via YouTube.

The best part came at the nine-minute mark, when he told the crowd:

"We're going to be hardcore. HARD-core. HARDCORE! We're going to get better everyday. We're going to be tenacious. Something knocks us down and we're going to get back and keep coming and coming and coming and coming. Did you watch these guys? That was hardcore! Hardcore baby! Nothing gets in our way, BOOM! Keep coming. HARD-core. The HARDCORE Clippers, that's us."

 

Speaking of hardcore ... For the record, Ballmer bought the Clippers for a $2 billion (four times the record sale for an NBA team, according to the LA Times).

Related articles

Watch Steve Ballmer's intense tearful goodbye to Microsoft [Video]

Here Are Some Links For Your Weekend Reading

I'm surprised how many of my favorite quotes are from Thomas Edison.  He was a master of purpose and persistence. 

 

 

Here are ten posts that caught my eye. Hope you find something interesting.

 

Lighter Links:

• Work-Life Balance through Interval Training. (Harvard Business Review)
• The Secret to Creativity, Intelligence, and Scientific Thinking. (FastCompany)
• Why We Need to Tame Our Algorithms Like Dogs. (Wired)
• How Much Exercise Makes You Smartest? (RunnersWorld)
• Is Math Liberal? Math is more than just calculations. Beneath it all lies a nuanced way of thinking. (MotherJones)

 

Trading Links:

• Why Venture Capital is So Much More Compelling Now. (BothSidesOfTheTable)
• An angel investor's ultimate guide to AngelList Syndicates. (VentureBeat)
• 50 Top Startups from 2010: Acquired, Pivoted or Still Going? (LouisGray)
• The Fascinating Relationship Between the Price of Coffee and Starbucks. (Finance)
• U.S. House May Soon Kill the Death Tax. (Forbes)