Investment Grin Of The Day Google
How You Could Have Doubled Your Chipotle’s ROI
Continuation From Friday……(How You Could Have Squeezed An Additional 1,100% ROI From Apple Inc)
As per our earlier analysis, we would have initiated our original long position in Chipotle’s stock in November of 2008 at $42.20. A bear market of 2007-2009 was coming to an end and any potential investor in the stock should have been watching for a trend reversal and a possible entry point. A down trending resistance line was broken to the upside in November of 2008 and a long position should have been initiated at that time.
CMG Trade #1: Buy CMG at $42.20 in November of 2008.
From its 2008 bottom, Chipotle’s stock pushed higher unabated until reaching its interim top of $440 in April of 2012. Thereafter, the stock price proceeded to collapse 45% in 6 months. As with our Apple analysis above, there was no way to anticipate this particular collapse. Outside of a few fundamental and technical warning signs, there was nothing to suggest that Chipotle’s stock was about to go through a substantial decline. Nevertheless, any investor in the stock at the time should have been concerned with technical development between April and June of 2012.
The actual breakdown in Chipotle’s stock had occurred in early July of 2012 at around $380 a share. A trader should have liquidated his long position at the time and gone short.
CMG Trade #2: Sell CMG at $380 and go short at the same time/price. Net realized gain from the previous entry point…..$338 or 800%.
The stock price proceeded to quickly collapse to $242 by October of 2012. Throughout this collapse an analyst following the stock should have been watching for signs of a bottom. Since the overall bull market of 2009-2014 was still intact, it was prudent to assume that the stock would bounce as soon as the bottom was reached. And that is exactly what happened in December of 2012 when the technical picture reversed and the stock price pushed above higher high at $270 a share. A short position should have been covered at the time and a long position should have been re-entered.
CMG Trade #2: Cover our CMG short position at $270 in December of 2012 and go long at the same time. Net realized gain from the previous entry point…..$110 or 29%. Overall gain $448 or 1,061%.
Subsequently, Chipotle’s stock price quickly recovered to around $675, where it remains today. Yielding a total gain of $853 or 2,021% vs. our original gain of 1,465%. Proving, once again, the validity of the strategy.
Yet, just as with the Apple Inc example above, investors in Chipotle’s stock today (8/20/2014) should be on a heightened state of alert. Based on the stock’s extreme overvaluation levels and the upcoming bear market of 2014-2017. In essence, investors in Chipotle’s stock should be watching the stock very carefully for any signs of a technical breakdown. Ready to reverse position and go short at a moment’s notice. Buying the stock back later on and at a bear market bottom.
To Be Continued Tomorrow……
Janet Yellen’s Market Fail
8/22/2014 – Another mixed day with the Dow Jones down 38 points (-0.22%) and the Nasdaq up 6 points (+0.14%)
Well, so much for that well anticipated Janet Yellen’s Jackson A-Hole speech 1.3% market pop today. I guess 8th year breaks the trend.
On a more serious note, while most investors don’t comprehend this just quite yet, the FED has already shot itself and the US Economy/Markets in the head. It is already too late. By cutting liquidity (QE) and suggesting an upcoming increase in the interest rates, the FED has put the market in an impossible situation. Facing a massive overvaluation bubble, a flattening yield curve, historic complacency levels and FED tightening. In other words, it is a recipe for disaster.
At this juncture and as far as I am concerned, only one thing is keeping today’s markets near all time highs. Smart money is not quite yet done distributing their stocks to retail fools. Although we are almost there. Expect the market to implode as soon as that happens.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning when the bear market of 2014-2017 will start (to the day) and its internal composition, please CLICK HERE
(***Please Note: Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. August 22nd, 2014 InvestWithAlex.com
Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!
How To Develop Business Ideas
Continuation from yesterday……Typically, I concentrate on Three Primary categories that I am already involved in. Although the process would be the same if I was generating NEW business ideas. For instance, here are some ideas from today’s session in all three of my categories.
1. Ideas to improve my existing businesses. (3-4 daily ideas)
- I should allow insiders to post valuable information in regards to publicly traded companies on my InvestWithAlex.com website. That should drive a lot of traffic to the site.
- I should add a self managed advertising platform for users of our ExpertZoo.com project. (Project is scheduled to be re-launched in January).
- Start researching a possible short position in FORD Motor Co. (F). Should the US economy and financial markets decline as anticipated, Ford should decline at X multiple to the market.
2. Ideas from media reports, publications or something that I have seen around. (3-4 ideas)
- Robotics should become a huge growth industry over the next 10-20 years. Maybe I can create a robotic fan. It would operate in the similar fashion to the robotic vacuum. It would follow me wherever I would go inside the house, providing me with a constant stream of fresh air.
- A lot of war veterans are committing suicide. I can build a recovery center in the Philippines that would help them to get better from the psychological perspective. While at it, the same facility can help veterans with job retraining. Maybe I can get the US Military or the US Government to pay for the program.
- English teaching schools are incredibly popular in China. Yet, not many in China are teaching western world financial literacy and/or how to invest in the stock market. What if I can combine the two into one in order to offer the Chinese people a new way to learn English. Increasing their future wealth and earning capacity in the process.
3. Ideas from my Idea Matrix. (3-4 Ideas)
Below is my randomly generated idea matrix for today.
| Business Cards | Smart Phone | Kitchen |
| Cloud | Boxing | Car |
| Chemical Engineering | Revolution | Dog |
| Candle | Beautiful Girl | Stapler |
| Sandwich | China | Medical Center |
Here are the four ideas I got from the matrix in about 5 minutes.
- Business Cards + Smart Phones: Create a thin digital LCD and memory package that would act as a business card. When someone picks up your card they would be able to immediately learn more about you while initiating various interactions.
- China + Beautiful Girls: China has a huge demographic problem. There is a lot more men than women. And all of the men desperately want a beautiful girl on their arm. Create a matchmaking service that would supply wealthy Chinese men with beautiful “marriage material” type of girls. A premium and an expensive service. Not a typical dating site.
- Smart Phones + Dogs: To create a smart phone type of a device for dogs. American culture is obsessed with dogs. A small and inexpensive cell phone type of a device would be attached to a dog’s collar. It would then send you various updates, pictures of your dog, etc… to your PC or to your smart phone. At the same time you would be able to call the phone and it would answer. You would have the ability to say “Hey buddy” (or whatever else) and your dog would hear your voice.
- Gourmet Sandwiches + Dogs: Create a delicious and a nutritious line of sandwiches for dogs. Owners and dogs alike will love it. You can start with one store and then mass market the idea to large retailers if the concept works.
Are these the best 10 ideas I could come up with in 30 minutes?
To Be Continued On Monday…….(Why Am I Seeing This On A Financial Website?)
Investment Grin Of The Day
How You Could Have Squeezed An Additional 1,100% ROI From Apple Inc
Continuation from yesterday……Turning our original 75 bagger into an 86 bagger. While not a significant increase, still, it is a substantial improvement from our original investment. Particularly, when you realize that the Nasdaq remains in the negative territory since its March of 2000 top. It is also important to note that much better entry and exit points are possible when an analyst or an investor is working closely with the underlying stock. Most of the entry and exit points above were based on higher highs or lower lows on the long-term chart to illustrate the validity of the concept. When actual trades are executed it is possible to be just a few points or a few days away from the actual tops/bottoms. Supercharging our performance even more.
Finally, while it is likely capital gains taxes will minimize the overall impact of the additional 1,100% ROI, this remains a strategy worth perusing. Particularly in today’s secular bear market. For instance, right now (August 2014) would be an excellent time to start thinking about liquidating a long Apple position in preparation for an upcoming bear market of 2014-2017. If nothing else, any investor in Apple’s stock should be on a heightened state of alert. Ready to sell his long position and go short at a moment’s notice.
As the upcoming bear market leg develops, it is highly probable that Apple’s stock will decline significantly due to its general overvaluation and a substantial bubble in the overall stock market. Triggering a decline similar, in both magnitude and duration, to the one sustained between 2007 top and 2009 bottom. Any investor executing the strategy above should be able to protect his gains, profit on the downside and re-enter his position at a much lower price when the foresaid bear market ends. Pushing his or her overall returns even higher.
To Be Continued On Monday…….
How You Could Have Squeezed An Additional 1,100% ROI From Apple Inc Google
Janet Yellen Will Send Markets Higher Tomorrow…..For Sure….Right?
8/21/2014 – An up day with the Dow Jones up 61 points (+0.36%) and the Nasdaq up 6 points (+0.12%).
Everyone is full of anticipation. Why Janet Yellen’s Jackson A-Hole speech could give the stock market a boost.
The Kansas City Fed’s annual Jackson Hole economic symposium kicks off Thursday, and Fed Chair Janet Yellen will give the keynote speech Friday morning. For most of the past seven years, the S&P 500 has rallied an average of 1.3% on the day that the Fed chair speaks, according to Bloomberg.
So, there you have it. If you would like to make at least 1.3% tomorrow alone, load up on stocks before Janet Yellen opens her mouth. Better yet, load up on some call options and make a fortune.
On a more serious note, “Buy the Dip” mentality is so well entrenched by this point of time that no one……….and I mean NO ONE (not even the bears)……anticipates any sort of a major sell off. Perhaps they should.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning when the bear market of 2014-2017 will start (to the day) and its internal composition, please CLICK HERE
(***Please Note: Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. August 21sth, 2014 InvestWithAlex.com
Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!
Janet Yellen Will Send Markets Higher Tomorrow…..For Sure….Right? Google
Business Idea Generation Tips
Continuation from last week…….STEP #9: Write Down At Least 10 Ideas Per Day While Cross-Referencing Them.
Finally, it is incredibly important that you write down all of the ideas that you were able to generate throughout the day. At least 10. Good or bad. Get a small notepad specifically for this purpose and DO NOT skip this step. Ideas that might seem irrelevant today might turn into something big a few months down the road. If you are to skip this step it is highly probable that today’s ideas will be forgotten forever and all of your hard work will be in vain. Write them down, even if they suck.
There are tens of thousands of multimillion dollar businesses out there that started our as horrible ideas. If you would like to sell “Bacon Flavored Ice Cream to Dogs”, but think it’s a terrible idea….don’t be so fast to dismiss it. Write it down. Maybe it is a terrible idea, but maybe it is your multimillion dollar business. Until you do a little bit more research into the space, you won’t be able to answer that question. Either way, make sure you write it down.
As was suggested earlier, your ideas will get better as you keep practicing this craft daily. Plus, you will gain an uncanny ability to go back and forth between your new and old ideas. Creating some amazing combinations in the process. Similar to what the Idea Matrix process above was able to accomplish. With one primary difference. This time you will be working with your own original ideas that are tailored specifically to your interests and desires.
Summary:
Thus far, we have looked at 9 different approaches you can implement today in order to start generating amazing business ideas. Further, we have covered the fact that idea generation is a skill that can be learned and improved upon. Assuming that time and effort are dedicated to the process.
Given enough daily practice anyone can become an expert in idea generation over a relatively short period of time. That, of course, can mean all the difference between starting a $100,000/year and $100 Million/year business. If you have no idea which business to start, begin implementing all of the steps above immediately.
My Own Example:
The daily routine I implement when I am actively pursuing various business or investment ideas is as follows.
First, here is what I need.
- 30 minutes. Daily.
- A notepad.
- A pen.
- An idea matrix.
- Ability to disconnect from everything.
- A quiet coffee shop or a dinner (optional)
To Be Continued Tomorrow…….(Why Am I Seeing This On A Financial Site?)
Inspiration Of The Day
How You Could Have Made A Fortune With Apple
Continuation from yesterday……AAPL Trade #1: Buy Apple at $1.25 a share in May of 2003.
AAPL Trade #2: Sell Apple in January of 2008 at $22.50 a share. Net realized gain from the previous entry point in 2003….$21.25 or 1,700%.
AAPL Trade #3: Trading in and out of the stock in April and September of 2008 at around $22.5 a share. At net zero capital gain/loss.
AAPL Trade #4: Going short at $22.50 in September of 2008.
As was mentioned earlier, an analyst familiar with the overall composition of the stock market would have been aware that the market was likely to bottom in the first quarter of 2009. Any investor with access to such information should have been watching Apple’s stock price for signs of a reversal into the subsequent bull market. Ready to cover his short position and go long at a moment’s notice. This instance occurred in March of 2009 when the company’s share price broke above $15 a share and pushed higher.
AAPL Trade #5: Cover our short position at $15 in March of 2009 and go long at the same time/price. Net realized gain from the previous short entry point…… $7.50 or 33%. Overall profit…..$28.75 or 2,200%.
Following 2009 bottom, Apple’s stock price continued to rally unabated until reaching $100 a share price by September of 2012. This action was followed by a quick reversal and a subsequent 45% decline into its April of 2013 bottom. Unfortunately, it would have been hard to anticipate this quick decline. Outside a few fundamental reasons (management, slowing sales, guidance, etc..) very few people could have predicted this particular decline. Even with the help of our mathematical and timing work. If anything, our mathematical and timing work would have suggested that Apple’s stock price would continue to appreciate until the bull market terminates in 2014.
Nevertheless, a position trader should have traded in and out of the stock at around $70 a share. At a net zero gain/loss. Bringing us to today.
AAPL Trade #6: Considering trading in and out of the stock at $70 and today’s price of $95, net realized gain from the previous entry point…..$80 or 533%. With the overall profit at…..$108.75 or 8,600%.
To Be Continued Tomorrow…….