Head and shoulders neckline and the trendling have broken to the upside, but right now we are overbought on many accounts. McLelland oscilator, williams %, nearing edge of bolinger bands, slow stochastics. volume on rallies is much lower, declining volume the last 3 days on the rally, death cross still in, etc. Gold breaking...
Monthly Archives: July 2010
Elliot Wave
The Elliot wave cycle is based upon the fractal nature of reality. The wave principal is not really a forecasting tool, it is more of the principal by which markets behave. The idea that we live in a holographic universe as modern quantum physics suggests means that we all are one large wave particle, and...
Avoid Stock Tips, stock picks, and lists of stocks to buy
The year was 1999 and everyone on the planet was giving investment advice. Most likely it was these same people that had advized people to buybeanie babies earlier on this year. It’s not that they didn’t believe they were giving good financial advice, it’s just that they didn’t know any better. You know who...
Short The Retest of the Head and Shoulders Breakdown
Market is currently oversold and the H+S pattern is still in tact. Great time to get short. Observe. This is what the market did. Note how in 08 it broke through the long term uptrend, and then in early 2010 it tested the downtrend started in ’07 and fell. It then broke through the...
Predictability Of Earnings
It's a fact that predictable companies over the long run will outperform unpredictable companies. Companies in stable businesses with predictable earnings will be able to deliver consistent earnings. It may not sound like much. Why would it matter if one company gets $1 EPS one year -0.04 the next, then $2 per share the...
A Good Trading System
The way trading in the stock market works, is pretty much the same as the way it would work in the system of barter and trade. Trading not only requires business skills but also requires analytic and soft skills. Besides the business like thinking and talent, a trader also needs to learn some facts...