SPY, FAZ and more

The major market averages had a difficult time today, starting out positive but then selling off for the remainder of the day, all ending lower.

As referenced by the SPY ETF chart below, we are still under the ATR buy signal and tried to get above the 150 mark today, but sold off after bouncing off this potential resitance area.  A very good friend of mine has been recommending being short (at the very least for market protection) in an ETF such as FAZ, also whose chart is below.  Remember, short-selling stock doesn’t only have to be something that the pros do, all indivdual investors have the ability to protect themselves in a market by purchasing “short ETFs” of which there are many nowadays, and will only continue to be in more abundance.

Tim Ferris (author of The Four Hour Workweek) has a new post on his blog which is titled, “The Difference: Living Well vs. Doing Well.”  The article is actually written by Rolf Potts, author of his perennial favorite and heavily highlighted Vagabonding.   I think this is an interesting read, so check it out and let me know what you think.

I need to jump-start my exercise habits, which are essentially non-existent these days.  I am wondering how muay tai fitness would be?  I think it would be interesting, difficult, new & exciting, etc.  See the summary below, which was extracted from a website from a gym located in the RTP area:

Muay Thai Kickboxing is the hottest workout around. It is a cross of

punching, kicking, knees, elbows, ab work, pushups, and techniques

all designed to sculpt your body while learning a 2000 year old martial art!

In the average 1 hour class, you can expect to burn between 500-800 calories.

There are many reasons to take muay Thai, such as the full body workout

that cannot be duplicated anywhere else, the practical use of self defense,

and that extra drive you get from working out with a team.

Here are a few new items from the Harvard Business School Working Knowledge site:

What Brazil Teaches About Investor Protection

When Brazil entered the 20th century, its companies were a model of transparency and offered investor protections that government did not. Can our financial regulators learn a lesson from history? HBS professor Aldo Musacchio shares insights from his new book.

Working paper: Just Say No to Wall Street: Putting A Stop to the Earnings Game

Over the last decade, companies have struggled to meet analysts’ expectations. Analysts have challenged the companies they covered to reach for unprecedented earnings growth, and executives have often acquiesced to analysts’ increasingly unrealistic projections, adopting them as a basis for setting goals for their organizations. As Monitor Group cofounder Joseph Fuller and HBS professor emeritus Michael C. Jensen write, improving future relations between Main Street and Wall Street and putting an end to the destructive “earnings game” between analysts and executives will require a new approach to disclosure based on a few simple rules of engagement.

What Do You Think? Is Denial Endemic to Management?

Online forum OPEN till Thursday, May 27. Denial can lead to remarkable achievements against all odds, yet it can also have a corrosive effect in organizations, says HBS professor Jim Heskett. How common is denial? What can you do, if anything, if you believe that the people to whom you report are in a state of denial? What do you think?

First Look: New Research by HBS Faculty

Thinking of an innovation system as a pyramid … Lessons from the U.K. and Germany in U.S. health-care reform … Case: “Revitalizing Dell.”

And finally, a few noteworthy items from today’s financial news:

John Paulson, the hedge fund manager who reaped billions from the infamous ‘Big Short” against the subprime housing market and the American financial system, is now increasing his bet on their recovery, according to recent filings…CNBC

How could Apple possible go to $300 despite Europe’s issues…CNBC

Linkages between stocks, futures and exchange-traded funds, a “mismatch of liquidity” and stop-loss and market orders may have worsened the plunge in U.S. equities on May 6, according to a report by federal regulators…Bloomberg

Carry Bloodbath Resumes With Full Blown Liquidations Imminent…ZeroHedge

RICHARD KOO: THE BALANCE SHEET RECESSION IS NOT OVER…Pragmatic Capitalist

“I Love It When A Plan Comes Together”, by Technically Speaking, Market Analysis and Theory.

Have a good evening!