Power Trading Radio

Guest host John O'Donnell and his special guest Jim Weatherall discuss Jim's new book "The Physics of Wall Street." Jim is a physicist, mathematician and philosopher. He holds a position as Assistant Professor of Logic and Philosophy of Science at the University of California, Irvine. He is also a member of the Institute for Mathematical behavioral Science.

Scott McCormick joins Merlin to talk about how traditional investment models, which are used by financial advisors around the world, are setting you up to fail this year. They address the issue of Bonds in your portfolio, a common wealth management tactic, which has an elevated level of risk in current markets. Scott also talks about asset allocation models & relative strength analysis to find strong investment opportunities. This tied together with sector rotation models will help all investors time the markets with greater accuracy.

Merlin starts off the show by answering a listener question regarding using futures or ETF as a leading indicator for market direction, referencing trading examples from his trading career to help explain. Bob Dunn joins the show to talk about his viewpoints on the current markets adding a lot about market psychology and behavior analysis. Bob also walks listeners through what he has been teaching his current futures trading class in Irvine California.

Scott Greer joins Merlin in the studio to talk about the markets and his current projects. Scott talks also talks about several of the current trades he is in including the USDJPY, GBPUSD, and AUDUSD. Listeners also send in questions regarding trading styles and the plight of the Euro.

Chris Manson joins Merlin to talk about his use of patterns in his trading activities. Expanding beyond the traditional Head and Shoulders type of patterns, Chris looks for cycles and rhythm which can give him clues of how long particular moves should last. This helps him identify targets more effectively, as well as lock down stop losses. The duo take a look at several examples as well as the current the markets.

Jimmy Morrison, Director of the new film “The Bubble”, joins Merlin and John to talk about the motivation and production of the film as well as some of the important lessons he learned along the way. Mr. Morrison interviewed many prominent individuals in the financial markets to get the data for the movie, which attempts to clarify what caused the housing & stock market bubbles, as well as offer suggestions as to what the next bubble may be. Later in the show, Merlin announces the weekly gold coin winner, who had an amazing forecast which was dead on!

Bob Heitner, commander of the ProActive Investor XLT room joins Merlin to talk about the upcoming year and what investors should be looking to do with their long term accounts. Merlin and Bob take a look at portfolio rebalancing and the implications of not using this risk management technique. They also talk about removing volatility from ones portfolio as well as one popular sector to avoid this year due to increased risk.

Steve Moses joins Merlin to talk about the trades he unwound just before the end of the year, which was clearly spelled out in his blog in Power Trader Nation. Steve and Merlin look at the impacts of the Fiscal Cliff deal and the upcoming Debt Ceiling issues analyzing their potential impact on the financial markets. Later, Steve shares with listeners a trade that he is currently in using Option Spreads, and will continue to be in until price breaks out of its current range.

Tillie Allison hosted the show today while Merlin Rothfeld in on a Holiday Getaway. Tillie is joined by the “
Ambassador of Opportunity” John O’Donnell. Tillie and John talk about the global pricing paradox and the “real” value of the stock market. There are many products to trade including Gold ETFs, Futures, and Options to give traders an edge. Lavern L. from Mississippi won the “Gold Coin Giveaway”. The next “Gold Coin Giveaway” will be on January 4, 2013.