One item that has been on my bucket list is to read the entire works of Sherlock Holmes. I just never had time before; work, raising a family, and there were other items to read to take up my time. Sir Arthur Conan Doyle writes compelling tales of mystery, there is no doubt why he is held in high regard as one of the world’s greatest writers.
One tale that I find most intriguing is The Hound of the Baskervilles. Sherlock Holmes was called to investigate a murder on the country estate. The all important clue came from the family dog. The fact that the hound did not bark while the crime was being committed. That was a strong indicator that the dog knew the criminal, and the murder was an inside job. So it was that Sherlock Holmes received his signal not from the action but from the lack of expected action.
The Hound of Baskervilles signal works in leadership and it will work in your investments if you trade or investment on your own. First leadership. If some newsworthy event occurs in your place of employment, especially regarding a crime-like event occurring with no known perpetrator, the workplace is abuzz with rumor, comments, and predictions. Your subordinates will be calling out names of plenty of people in other departments or areas. When your colleagues are quiet, not rendering opinions, and are acting pensive…it is most likely one of the team members of your department. Your workers know.
Now I surely do not claim to be an investment adviser, far from it. I am a student yes, and am continuing to learn. I am studying a great book on trading called, Come Into My Trading Room by Dr. Alexander Elder. When you buy on strong signals in technical analysis, according to signs, everything points to a strong buy, but the market ignores those signals and goes against you, it is a Hound of the Baskervilles indicator. This means that something is changing below the surface of the market. And it is usually a strong signal in and of itself to follow the trend of the “Hound.”