Quote of the day

“Ride the market’s coattails. Never try to out think it. The market is the one place where following trends and not making them is cool.”  (UpsideTrader)

Chart of the day

Facebook is now worth more than eBay (EBAY) and Yahoo! (YHOO).  (TechCrunch)

Markets

“Market returns are more volatile than most people realize,” Mr. Easterling said, “even over periods as long as 20 years.”  (NYTimes also Big Picture, Falkenblog)

Why the equity market rally can continue through Q1.  (Big Picture)

The true January effect is a small cap effect.  (Mark Hulbert)

We can finally start paying attention to the VIX again.  (Daily Options Report)

Individual investors are shifting out of bonds.  (Pragmatic Capitalism)

John Paulson is still coining money.  (Clusterstock)

A review of capital market returns in 2010 and an appreciation of portfolio re-balancing.  (AR Screencast)

Strategy and Tactics

Ori Eyal, “The key to long-term wealth creation is not earning high returns. Rather, it is earning good returns while avoiding (or minimizing) the blow-ups.”  (Distressed Debt Investing)

A “visual stop loss” is not a stop loss.  (The Reformed Broker contra Trader Habits)

Six reasons most traders fail.  (The Reformed Broker)

Volatility skew is tough for options traders to ignore.  (Options for Rookies)

On the relationship between Google queries and stock market volume.  (Alea)

On the importance of exposing your ideas to a skeptical crowd.  (Gregor Macdonald)

Technology

Goldman Sachs (GS) invests in Facebook.  What will the SEC say, if anything?  (Dealbook, ibid, Howard Lindzon, Felix Salmon, Deal Journal, Rational Irrationality, Term Sheet, SAI)

If everyone already owns Apple (AAPL), why is not getting any respect?  (Apple 2.0 also Tech Musings)

Marion Maneker, “The tablet is an expression of the power of the cloud.”  (Big Picture)

Seven (plausible) technologies that will come to the fore in 2011.  (TechCrunch)

Web-enabled TV is coming, but it is yet ready for prime time.  (Fortune Tech)

Andy Kessler on how videogames are changing the economy, for the better.  (WSJ)

Finance

Bank of America (BAC) loses a round to Fannie and Freddie.  Stock soars.  (Street Sweep, Deal Journal, Money & Co.)

Jeff Carter, “I always thought that the most efficient markets were transparent, accessible to everyone, and competitive.  That is not what we are getting in our SEC regulated market places today.”  (Points and Figures)

How much is Ally Financial worth?  (Dealbook)

Global

Worldwide factory activity by country.  (Real Time Economics)

Bet against a meltdown in Japan at your own risk.  (Money Game, ibid also Global Macro Monitor, Daniel Drezner)

Albert Edwards is a huge China bear.  (Guardian UK, Money Game)

The party isn’t over in Australia, yet.  (Bronte Capital)

Economy

ISM manufacturing still on the upswing.  (Calculated Risk, Crossing Wall Street)

The year in economic data.  (VIX and More)

Residential investment isn’t going to do much for economic growth in 2011.  (Calculated Risk)

How do we replace crude oil with natural gas?  (Econbrowser)

Just because

A rundown of the worst playoff teams, ever.  (FiveThirtyEight)

Scott Adams, “The next big thing is recreational travel.”  (Dilbert Blog)

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