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January 25, 2007
Double-digit Dow loss today, Thurs., Jan. 25, 2007, 6:16 PM
It's always a good idea to look at the big picture when the Dow stumbles by double digits after a period of side-tracking. Here is the interactive chart. " Here is the list of the biggest loser's today on the NYSE.

Today, the two important gainers in the industry groups were (i) real estate operations, and (ii) iron and steel.
The attempt at a private equity buy-out of grand daddy Equity Office Properties (EOP) is the reason for the real estate group being up. Otherwise there is nothing happening here.

For iron and steel, the big news was (Cara 100) Nucor (NUE), which was a surprising high profit report. Not only did Nucor beat consensus estimates by a mile, the current quarter is well up on a year-over-year basis. That got researchers looking into the whole steel group. There were 7 up and 8 down, but traders are culling the list for possible winners, so that (greater number of losers) is not a surprise.

What surprised me today was the day's performance of the U.S. optionable stocks. There were 553 (19.2 pct) up and 2324 (80.8 pct) down. But, there were 232 new highs and just 21 new lows. That means that 42 pct of the optionable stocks that were up on the day happened to hit intra-day highs.
In my view, that means (i) very few stocks are bearing the burden of the Bull, and (ii) these stocks have had a long run to the upside, and when they get tired, which other stocks are going to carry the Bull on their back.
On another matter, I watched with interest an interview from Davos Switzerland (World Economic Forum meetings) of Labor Dept Secretary Elaine Chao. Secretary Chao took great pride in stating that America is such a "Jobs Machine" that countries like China are querying her as to how to accomplish the same.
I was surprised that four fingers actually fit down my throat.
With all due respect to Ms. Chao, does anybody really believe the Labor Dept data these days? Was she really sought after by Chinese authorities seeking answers? Or, are we all now living in a land of make-believe?
The other message that Ms. Chao was giving is, however, important, although I didn't like her reasoning. The issue is that American's are spending some $10 billion a year for skills training, which, if true, is admirable. But then she said it was because Americans have a soft spot in their heart for people who need these skills to upgrade their job. Pardon me?
Today, the energy sector took a big hit. Crude Oil was down a lot, so that was understandable. But up til today, I don't think the energy company charts as a whole were looking worse than, or even as bad as, several other sectors " like tech for instance.

Finally, I had several readers send me mail inquiring as to the suggested title of my book. They said I'm not in their eyes a "day" trader.
This was a choice of the publisher, but it is subject to change. I was merely showing you where the project stands. However, I'm really happy that my readers are responding. Maybe you'd like to help me make a new title.
The book by the way is pretty much what I do in the blog. I happen to cover the A to Z of the areas of the market and the instruments we trade that I think are important to us all. I tell readers much of what I learned over many years as a trader, and what subjects I think they should try to master before venturing out on a program of self-directed trading. If the effort is made, the worst that can happen is that the reader ought to be a better client for a professional advisor.
So, why not send me a few catchy names for consideration, and I'll survey the readership next week? Thanks.
Posted by Posted by Bill Cara on January 25, 2007 06:16:08 PM | Category: Cara Today in the Market
Discourse
Here's my suggestion for a title:
"CARA: CUTTING THROUGH THE BULL"
I know, I know, the publisher will hate it...unless you use Cramer's publisher, in which case they'll love it and try and get you to do a half hour show on CNBC.
But, cutting through the Bull is what you do for us, Mr. Cara, and we really, really appreciate it.
Be well.
Posted by: elvispoc
at
January 25, 2007 8:17 PM [link]
I think, so far:
MASTERING THE TRADE
and go for cover art more like Malcolm G... (sic) Blink, The Tipping Point.
You will aquire instant credibility and distinguish yourself from the get rich quick crowd...please.
Posted by: Rigdon
at
January 25, 2007 8:22 PM [link]
Also, Tom Keane had a good spot on Bloomberg radio ("On the Economy") w/ your main man Nouriel Roubini, who apparently got gang tackled by the neo-bulls at Davos. Roubini persisted bravely in an effort to get the truth out.
A good spot. Roubini doesn't lose his sense of humor.
Posted by: elvispoc
at
January 25, 2007 8:24 PM [link]
Bill-glad you are feeling better. let's hope 2007 gets better for you on the health side of the ledger.
How about Cara: The Anti-Cramer??
Or: Cara: Filtering the Market Noise...something to that effect, because that is what you do on your blog and in your WIR-which is absolutely tops in the blogosphere and the internet.
Ray
Posted by: rayg
at
January 25, 2007 8:26 PM [link]
elvispoc and everyone else,
Nourel Roubini's segment is not there for whatever reason, but many of the Tom Keane interviews from the World Economic Forum in Davos, Switzerland, are there. Spend 30 minutes and get a good overview of what global thinkers are talking about/debating.
Posted by: NYUgrad
at
January 25, 2007 8:40 PM [link]
First on E Chao, I can only say it is her job (like other secretaries) to be as positive as possible, however much the reality is skewed (spun). Otherwise she would be out of her job faster than you can say "You're hired!", sorry, I mean "You're fired!" I think it should have been up to the media you were watching to get someone else to take the other side!!
Secundo, on the markets, I sure hope we get more downside tomorrow so I can book some short profits, it sure has been tough on bears since 2007 started.
Last but not least, good to see you are on the mend. How about "Bill Cara on Bill Cara" or "The Cara Trade". Trump would recommend that for a title. only kidding
Bill,
As you probably know, there are a lot of trading books lining the shelves at bookstores and online merchants; all vying for our interest. I would hate to see a valuable resource like yours get lost in the crowd. So the title could be fairly significant in terms of grabbing attention.
Perhaps the title could capitalize on the emerging populist sentiment in order to differentiate yourself. For example, if I was browsing at Barnes and Noble, I might pick up the Blodgett book and flip through it based simply on the "self defense against Wall Street" theme of his title. I don't know if your content will be strictly trading-oriented or will also include the type of things you talk about here (the "what Wall Street doesn't want you to know" sort of thing). If the latter, maybe something like "Capital Markets and Social Equity" (where have I heard that before?). Only half-serious with that and of course the title does need to indicate that the book is in fact about trading. In any case, best of luck with it and I hope it eventually reaches the wide audience it deserves.
Posted by: RMX
at
January 25, 2007 9:29 PM [link]
Hi Bill, Have been following your blog for some months now and am sure it has helped me to understand the nature of financial markets better than anything else I have seen.I also enjoy your personal approach that keeps things interesting and from getting too dry.
As for your new book title how about: " Dancing with the Dow" - Steps to trading with confidence By Bill Cara
Thanks for the great work that you and your readers do. p.s. Glad to hear that you are feeling so much better and am looking forward reading again about things the way you see it.
Posted by: DancingWithBulls/Bears
at
January 25, 2007 9:48 PM [link]
RMX
"Capital Markets and Social Equity" is a great book idea (could even be a two book idea) and one I would encourage Bill, or anyone else to pursue. I am sure that there will be many publications of similar themes, particularly after the carnage that appears to be emminent.
As for Bill's honest and practical approach to investment, I would rather see something far less presumptuous, far simplier to understand and more closely following the truth of ockams razor (does anyone know how to spell that?)
Bill
Don't try to write everything at once.
First things first.
Plenty of time to fill in the gaps.
Just my HO.
Cheers and here's to your return to full fighting weight.
Posted by: Rigdon
at
January 25, 2007 10:00 PM [link]
I agree that the daytrader title conveys more of a dot-bomb era book than one I would pick up without knowing the author. Most people are in this for the long haul, though it feels like a day-trader's market right now.
Here's a few suggestions, none to be taken too seriously...
Bill Cara's Happy Money: Read Blogs & Get Rich
You: The Stock Investor
Bill Cara, Trader Wizard & Social Equity: Relative Strength for the Little People
Shareholders Wronged: Inside the Capital Markets
Storytellers and Stock Promoters: The Myth of "Good Debt" and Capital Markets
Wizdom of the Trader Wizard: Bill Cara on Capital Markets, Investing & Social Equity
Trader Wizard: A Neo-Capitalist's Guide to Investing
Maybe use some of the pictures similar to what's on your About link, touched up a bit?
Of course, it is much easier to pick a title by reading the book than judging a book by it's cover.
Maybe you can release the first chapter on your site, replacing the Bahamas link with a Book link? ;)
cheers
Bill, I like RMX's "Capital Markets and Social Equity" The other theme that hits me every week is: "Remember the Cara Mantra: We trade prices - watch the tape" Every time I read that it makes me think...
And very glad you are feeling better - I was surprised at the number of posts you made today (thanks!), but echoing what others have said here, take your time to recovery and get your rest - we can wait - a relapse would not be fun.
TG
Posted by: TimG
at
January 25, 2007 11:38 PM [link]
Hi Bill,
My suggestion for a title would be something similar to "Reminiscences of a Stock Operator."
The reason is that I presume the book will contain much of your experience and "playbook" that you accumulated through years of trading. Knowledge that you are going to pass on to other traders. It's your knowledge (albeit some passed to you by others) and I think the title should somehow reflect that.
By the way, I am halfway through "Reminiscences of a Stock Operator" and I recommend it to any traders. What was true in the 1800's and early 1900's is still true today.
Posted by: cb
at
January 26, 2007 12:05 AM [link]
Bill - Salient points for a title which says how your book is unique: 35 years experience on buyside and sellside; Canadian = outside wall st. looking in; strong, practical techniques for individual traders to defend themselves against increasingly dominant institutions.
If you can get that into a title w. subtitle, you'll have said it all.
There are just SO many books out there - and most are a waste of time. Yours will deserve to stand out. But how to make that happen?
Posted by: Jock
at
January 26, 2007 1:51 AM [link]
Here's my suggestion for a title:
"On the right side"
Trading against the sell side.
Posted by: HugoB
at
January 26, 2007 6:54 AM [link]
Bill,
I have thought of you as an alligator trader, the opportunistic predator who waits patiently for his prey. Title: Alligator trader?
Posted by: lessmore
at
January 26, 2007 8:46 AM [link]
Bill
"From the Inside Out"
the only way to grow financial and personally.
Posted by: mikede
at
January 26, 2007 9:17 AM [link]
Bill,
"Saying NO to Wall Street: The Cara approach to Capital Markets"
Posted by: TerryC
at
January 26, 2007 10:35 AM [link]
Hi Bill,
I just realized why there has been such buzz generated by the thought of an appropriate title for your book. Your blog has inspired and educated many. We are feeling a sense of community, which is what a great blog is all about. Best wishes for great success in your literary endeavour.
Posted by: TerryC
at
January 26, 2007 10:42 AM [link]
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a title..
MASTERING THE TRADING ART
Posted by: mbernold
at
January 25, 2007 7:15 PM [link]