Good Picture

My best friend, Jimmy decided to blow off life and move to Hawaii about 15 years ago.  I was his mentor in trading for about 5 years back in the mid 80’s. He made a fortune trading soybeans, and abruptly quit to perfect surfing, and never looked back.  He had not grown up surfing,  and first rode a wave at the age of 25.  When we lived in Minneapolis, I would regularly book at least one 5 day period a month where I would go on a surf trip(I got a lot of strange looks at the Minneapolis-St Paul airport with a quiver of boards).  I took him on one trip to San Diego, finally got him up on a wave, and he was hooked for life.  He became a regular fixture on my impromptu surf trips going with me on at least a dozen trips. Now, he’s living in a dump on the North shore of Oahu, enjoying life and surfing every day whether it’s in town or the country.  He never married, preferring to charge big Sunset, Pipeline, V-land, or Backdoor.  He sent me this picture of him surfing last week.  I’m so proud of him.  I know what teachers must feel when their students exceed their wildest dreams.  Not bad for a Minnesota boy who never saw the ocean until he was 25.

I snapped this picture right at our beach right before sunset.  The waves were breaking right in front, so we didn’t have to walk all the way to the jetty. I was able to squeeze in an hour of surfing, and it was nice to get out of the house and clear my mind.   It was surprising that a lot of my son’s friends showed up and used our beach to surf.  We had about 6 cars parked in front of the house, and the neighbors were complaining about the cars and noise.  I don’t worry about the neighbors, as they’re mostly seasonal residents and don’t really count.  They’ve torn down all of the little houses on our key and replaced them with McMansions….Tacky McMansions at that.  Everyone is going for that faux Florida look, with the pseudo Mediterranean look that doesn’t translate very well in this climate.

The seasonal residents are mainly rich people from the North, who won’t even give us a second glance.  They must have left their manners up North or something, or their parents didn’t teach them right.  From their viewpoint, we must look like aliens or something.  Our tumbling beach shack sticks out like a sore thumb where the average price of a home on our key is probably around $7 million or thereabouts.  This key is been relatively unscathed by the housing market slump, as most people are cash buyers and they ain’t making any more beach front property.

Here’s a youtube video of a drive down my street.

http://youtube.com/watch?v=cYKc1AVV-zo

Jeff

Another Little Gem

I’ve always had a weakness for Albrecht Durer.  I own a few of his woodcuts, and here is an example of one of my favorites.  We don’t own very many woodcuts, lithographs, or etchings, but Durer is an exception. Durer is just one of those guys who moves me with his sublime beauty. 

I was talking to a dealer the other day about an important acquisition I’m ready to make.  We’re in the negotiating phase, and I have my upper limit of what I will pay, and she has her lower limit.  I hope our limits intersect at some point as we really want this piece, and my lovely wife has some emotion tied up in this trade.  At this point, I’d face penury to make my lovely wife a little happier, and a little more comfortable.

Jeff 

What a Day

The markets weren’t too kind to me today.  I got beaten up a little, losing on 8 trades in a row.  My losses were pretty small, and I managed to escape with my bankroll intact.  Everything I did today was pretty stupid but hindsight is always 20/20. Oh well, I know better than to trade holiday markets.

On another note, seat prices at the MGEX continue to set new records.  One traded today for $285,000.

http://mgex.com/seat_prices_2.html

We have a nice little swell coming out of the west that’s about waist high.  I think I’ll squeeze in an hour of surfing before dark.  It’s very unseasonably warm here,  with today’s high of 85.

Jeff

Today’s news

I was saddened about the death of Bhutto.  I also had it 7:5 that she would get whacked within 6 months of her going back to Pakistan.  There are some things I don’t like to be right about, and this was one of them.  I did some selling of a few odds and ends, for tax reasons.  I generally stay away from holiday markets, as they’re usually pretty thin.

The wheat market took a nice hit today, on pretty low volume.  I’d like to see a bit more selling pressure put the prices down even more.  The spreads are all out of whack, and I’m confused regarding the wheat, so I guess I’ll stay out until that little light bulb goes off in my head.

I scored this poster off e-Bay.  It’s from the Surf Theatre in Huntington Beach, CA.  It’s an original Rick Griffin poster and I’m happy to add it to my collection.  Speaking of the Surf Theatre, back in the 80’s, I almost bought the place. I was burned out from the pits, and wanted some change.  They had placed an ad in Surfer Magazine entertaining offers.  I flew out there and did due diligence, and found that they had major lease problems so it was a no go.  It’s a shame that that place had to go bye-bye. Last time I checked, there’s a bunch of condos on that site.

Bad Trade

I’ve been thinking of all the bad trades I’ve ever made, and a real stupid one was probably done in 1986-87 when Brezhnev died.  I had been trying to buy silver for a few days in a row, and it was bid limit up for three or four days in a row. Silver looked really friendly to me, and I loved the chart.  I had a bid in to buy it in case it dipped a little.  I was otherwise occupied in the pit when a massive round of selling orders came in and I had to deal with that.  There was no real news coming out of the market, the sell orders just appeared.  I managed to squeak by in my wheat trading, making or losing a few bucks, I don’t remember which.  After the closing bell, after I was checking my trading cards, Sandy the clerk came up to me and asked me what I was going to do about the silver.  I said, “What silver?”  She told me that silver had gone from bid limit up to offer limit down in a minute.  My bid got hit, and I owned silver much higher than the market close.  I owned 15 contracts, to be exact.  I found this to be impossible, checked out the COMEX charts, and discovered that she was right.  I got that sinking feeling in my stomach, but said, “The hell with it, it’s only money.”  The next day, the metals all opened up limit down on no news….This wasn’t good.  Around 11AM, the news that Brezhnev had died crossed the wire.  Thankfully, the metals immediately started to trade on that news, and I got out of the silver immediately, and took my hit like a man.  I might have ended the day a little poorer, but I gained some wisdom that day. 

I’m going to start listing as many of my bad trades as I can think of as a public service.  Perhaps some of my readers can learn not to make the same mistakes I did.

Jeff

Fighting an American Icon

Once upon a time, way back in ‘77, I was a Junior in college. Back in those days, I had that smug, all knowing self confidence typical of many undergrads.Even though I was majoring in the physical sciences, I hung around mostly with the liberal arts and humanities crowd. They accepted me and I accepted them.One Friday morning, I was sitting in the union at a table with a bunch of my friends. It was a mixed crowd, and I was retelling one of the raunchier jokes I had told the night before at a poker game. The joke was disgusting, no, it was way beyond that(it was my version of “The Aristocrats:). Everyone at the table laughed, as it was pretty funny. A long hair guy at the next table over, piped up and rudely told me that I shouldn’t be telling that joke in mixed company. He was very aggressive, and in my face.  I casually told him to fuck off, and he got real redneck with me. Some shouting went on between us, bad things said. Things escalated and he got up out of his chair, I got up out of mine.We grabbed each other, and I ended up throwing the feisty little guy up against the wall. I was about to bust him in the face when some people grabbed and separated us. With that, I left the room. A few of my buddies(guys and girls) left with me. As it turns out, the guy I almost fought was Jimmy Buffett, who was playing a concert at our school that night. I’d never heard of him at that time, he hadn’t yet become the legend he is for people in the midwest and other places. I didn’t know at the time that the guy I was facing off with was a future star, not that it would matter. All I saw was a guy who was sticking his nose into someone elses business. We ended up going to the concert as it was free to students, and was a good place to get stoned. I totally enjoyed the concert, as he gave a pretty good show. I do believe that we made eye contact at one point, and he gave me a leer.

By the way, I enjoy Buffett’s music once in awhile. It is overplayed here in Florida, for the tourists benefit. I bear him no ill will. I’ve heard that he has taken up surfing in his old age(longboarding). I’d share a wave with him anyday. I’ve grown up

Jeff

Here’s an old scan from a newspaper article twenty years ago.  I’m the guy on the right in the picture looking at my spread collapse. That wasn’t panic in my face, but an intense focus on what to do to dig myself out.  I think during that snap shot of time, I was down about $40K after the first 15 minutes of trading.  I remember actually making a couple of bucks profit by the end of the day.  Those pits can be slippery slopes.

Jeff

Jeff

Christmas Eve

John is home for the holidays, and we are all together as a family.  I spent the day getting ready for Christmas, making last minute preparations, shopping, and doing some yard work.  I put up the finest tree I could find, and decked it out in all it’s glory.  John and I completely decorated our house.

Denise called a bunch of our friends last week, and invited them over for a mini open house tomorrow(Christmas) afternoon. Surprisingly, about 20 people accepted.  I had to make sure our liquor cabinet was well stocked.  To save time, I went to Publix and ordered some deli trays.  I’m not going whole hog with this impromptu affair, but will ensure everyone’s needs are met. 

I’m suffering with from a bout of insomnia and am listening to Vivaldi’s Concerto in D minor, while John is in his room IM’ing whoever it is that he IM’s.  Denise is fast asleep, and I go check on her every 20 minutes or so.  She’s very peaceful, and very angelic in her slumber.  I need to put the gifts under the tree.  I bought Denise a nice bracelet, and got John several nice gifts.  Apparently John went shopping, as some gifts appeared under the tree with his unmistakable handwriting on the cards.

We are very pleased with how our son is turning out.  He’s become quite a gentleman, and cuts a very dashing figure.  I can’t understand his passion for Greek and Latin, nor do I know where he inherited that gene.  Much to the chagrin of our family, we support John 100%.  John’s easygoing manner, sharp intellect, and wit better suit him to the boardroom or politics……He just needs a little street smarts, that’s all.

I haven’t done any trading for the past couple of days, and only have one dog stock that I need to sell before the end of the year, Sprint Nextel(S). 

I have joined a discussion  group of really smart people who are very passionate about the markets, trading, philosophy, and BBQ.  I feel honored and privileged to be included in such company.  I like being around people who are much smarter than me….maybe some of it will rub off.

I wish to extend my best wishes for the holidays for you all.  May the new year bring you good fortune.

Jeff

Another day in paradise

I went down to the beach to find knee high mushburgers breaking far out.  Still, I had an open window of an hour and a half, so I grabbed my 9′6′ Channin, with the step deck. I paddled out with an agenda….to catch enough waves to sate my hunger.  There were the waves, but there were also a bunch of groms just learning how to surf.  I took a few of them under my wing, and taught them a few things about the surfing dance, such as how to paddle, pop-up. and stand.  I paddled out with all of them, and coached them through a few waves each.  Out of the six kids I mentored, I got 5 to actually stand in the whitewater.  I thought that was a great start, and the kids were totally stoked.  I shortened their learning curve with that hour lesson. While we were out there, I thought of how I sat at that same exact break  with my son and his little surf Nazi friends  when he was 6 or 7 and wanted to be Gerry Lopez….actually I wanted to be Gerry Lopez, he wanted to be Kelly Slater.  My son grew up and is an 18 year old freshman majoring in Latin and Ancient Greek.  While I’m off surfing, he’s deconstructing Vergil.  I’ll take the surfing. Actually, my son is looking forward to some solid waves during break.  He’ll fly in tomorrow, and I’ll pick him up at the airport.  We’ll have a couple of weeks together as a family….probably the last two weeks we’ll ever have. 

I’ve skirted over the issue, but my lovely wife, Denise has incurable cancer.  It started in her ovaries, and has spread via the lymph system to her liver, pancreas, and lungs.  She quit her regimen of chemo (her choice), and is choosing to die with dignity.  She’s still mobile, but very fragile.  She’s 49 years old and is still the sweetest, most beautiful girl in the world.  She has the patience of Job…putting up with me and the market swings for the past 27 years.  Her doctors have given her a few months. 

She made me start this blog about my trading and is an avid reader. She somehow has it in her head that I have common sense and wants me to share it as her gift to the world.  I’m up for that, but if you charted my common sense vs. time, the resulting graph would look like a bad Dali painting.

enoughmelancholy, here’s something nice: The above is a poster from the early 70’s from one of the most influential surf flicks of all time.  Rick Griffin did the art work on this piece, and it shows.