Sports Investing Book # 1

I was asked to help edit a book on "Sports Investing" -- which applies concepts of contrarian investing to the sports marketplace. The book has been holding the # 1 spot in Amazon's "Sports>Gambling" category.

The academic viewpoint will interest everyone from the casual sports bettor trying to improve results - to the professional sports gambler looking for additional angles - to the Wall Street trader researching additional markets to trade.

Public sentiment and betting activity cause the sports marketplace to act irrationally, in a way which can be measured and exploited. The massive flow of public wagers force betting lines to fluctuate like an inefficient market. Point spreads, betting line movement, public betting percentages, money management, statistical analysis, and other important topics are studied. The implementation of contrarian investing – and theories such as "Betting against the Public" and "Smart Money" are developed.

Market's Continued Strength & Reason for Systems

The stock market has continued to march higher, with many analysts becoming increasingly worried. I have also worried a bit, as the market has moved relentlessly higher. On one hand, I chalked up the rally to the "wall of worry" that we sometimes discuss -- as a contrarian indicator. On the other hand, friends and associates have pointed out how the market rallied for X days in a row; or something like 95% of the last Y days.

This is one of the main reasons why traders like to use trading systems: discipline.

Our long-term indicators remain strongly bullish. Our overbought/oversold indicators have flipped between slightly bearish to slightly bullish and are currently neutral. As a result we have been Long -- and remain Long -- in this market.