This week the market did a decent job of making back much of last Friday’s losses. We find ourselves in a very dynamic time with volatility that can enter the market at a moments notice. Regardless of your positioning, it makes sense to know the different viewpoints of our economic state and to understand what drives each proposed scenario.

Todd Harrison continues to operate through a lens that views our current state with concern. He is very talented at managing risk short-term while he eloquently spells out his long-term thesis.

While a strong work ethic has many traders constantly wanting to be in the battle, sound discipline often mandates standing on the sidelines or reducing positions. Tickerville often touches on this subject and the benefits of having a well thought out plan.

The Financial Bullet wrote an interesting piece on Countrywide Financial and their earnings report Friday.  The stock was up significantly after reporting a sizable loss.  Still the negative trend appears to be intact.

Vontage was a huge disappointment from day 1.  The company finally settled litigation which has been hanging over the stock, and still has money on the balance sheet.  Highest Conviction still thinks the shares will go to zero due to their cash burn.  However, there is always the chance of a buyout.

Gannon has a very interesting book review on “Active Value Investing” by Vitaliy Katsenelson.  It is definitely worth the read as it melds modern market challenges and classic value theory.  Read the review – then read the book!

That’s all I have for this week.  Be vigilant next week as we traverse through month end dynamics accentuated by a Fed release at 2:15 on October 31.  What a crazy Halloween trick! (or treat?)

All the best,

Zach