Timing

When the strike of a hawk breaks the body of its prey, it is because of timing.---- Sun Tzu

Market Price

The generally accepted view is that markets are always right — that is, market prices tend to discount future developments accurately even when it is unclear what those developments are. I start with the opposite point of view. I believe that market prices are always wrong in the sense that they present a biased view of the future.— George Soros (1987, Financier, philanthropist, political activist, author and philosopher, b. 1930)

Gaps

Gaps are closed within two days in 90% of all occasions. If they are not closed it indicates that the market will continue strongly in that direction. -- Borsellino.

Least Resistance

A man ought not to be led into trading by tokens. He should wait until the tape tells him that the time is ripe. As a matter of fact, millions upon millions of dollars have been lost by men who bought stocks because they looked cheap or sold them because they looked dear. The speculator is not an investor. His object is not to secure a steady return on his money at a good rate of interest, but to profit by either a rise or a fall in the price of whatever he may be speculating in. Therefore the thing to determine is the speculative line of least resistance at the moment of trading; and what he should wait for is the moment when that line defines itself, because that is his signal to get busy. -------REMINISCENCES OF A STOCK OPERATOR by Edwin LeFevre

Moving Average

It’s a buy when the 10-week moving average crosses the 30-week moving average and the slope of both averages is up.— Victor Sperandeo (Trader Vic—Methods of a Wall Street Master)

Bottom

I keep hearing “Should I buy? Should I buy?”When I start hearing “Should I sell?” that’s the bottom.— Nick Moore (Portfolio manager,Jurika & Voyles, TheStreet.com Mar. 12, 2001)

Volatility

Short-term volatility is greatest at turning points and diminishes as a trend becomes established. — George Soros (Financier, philanthropist, political activist, author and philosopher, b. 1930)