On most financial sites/blogs I’ve been reading lately I find some mention of the markets’ indicators pointing one way or another. I use Relative Strength Indicator (RSI) sometimes, but not religiously like some traders do. It can be a good guide if/when the line crosses above 70, overbought, or below 30, oversold. I’m not convinced using RSI as a main tool is the best technical analysis tool, but think it can be used when needing one more reason to make the trade sometimes.
Another indicator I thought was reliable was the big yellow light that tells me when I’m low on gas in my car. Today I proved that light isn’t worth what it used to be. I had jury duty this morning and got dismissed before lunch. I was excited to be able to get back to work to bill for the day and check the markets. I got in my car and it wouldn’t crank, at first. I got it going and weaved through downtown Atlanta as fast as I could knowing there were no gas stations around. I had to get to one of the outlying streets. I made it to the street I wanted, but puttered out at the bottom of a hill – my gas indicator light still wasn’t lit. I called my dad to see what gas stations were near me since he knows the area fairly well. He (as a lawyer and judge) advised I not leave my car to walk to a gas station because I could be towed since I had rolled myself onto the side walk. He was just finishing court for a lunch break and helped me out as he always does when I’m in need. He drove from the courthouse to his home, got his two gas cans and drove to meet me. He was there within 30 minutes of my call. If only all indicators were as reliable as my dad I’d be rich beyond my dreams.
Back to money – while waiting for jury duty I finished reading this week’s Barron’s and remembered that I had been meaning to email Steven M. Sears, the writer of Barron’s “The Striking Price” (a must read for options investors). He mentioned in one of his articles a month or two ago that he was from Athens, GA, home of The University of Georgia. Something clicked and I realized I knew him from college. We were fraternity brothers. I emailed him and he replied within two minutes. He is a few years older than I am and didn’t remember me, but knew my older brother and cousin and others in between our classes. I’ve been reading his articles for a while and have referenced him on this blog a few times before I knew I knew him. I’m always amused by those little examples of the “six degrees of separation” that come our way. Now I have a one degree of separation from the newspaper I read most often. Those little things amuse me, especially on a day where I run out of gas only 3/10 mile away from a gas station that I couldn’t see.