regarding your comment, "what about economic
fundamentals". This is a technical analysis website, if you
try to incorporate all that stuff, you won't be able to
trade.
Keep it simple, just trade the charts. Fundamentals are
fine to discuss, but honestly
stocks really don't trade
on fundamentalsin the short and intermediate term,
they trade on emotion of
the masses,and
technical analysis (chart patterns, trendlines, etc) is
quite simply the study/analysis of that emotion or mass human
psychology.
Also, stocks generally form major tops when the fundamentals are
the best i.e. highest earnings and analyst rankings, and on the
flip side, they often bottom and rally when the fundametnals look
awful. Too many variables, keep it simple, just trade the
charts.
Posted by fkarlson on 16th of Jul 2009 at 12:29 pm
I understand your answer about fundamentals, but do not for one
minute think any of us are ignoring fundamentals.
The two H & S patterns that I mentioned are technical
analysis and have been supported here for quite some time. Does a
short bull run to the height of a second right shoulder on the
current pattern cause us to drop entirely the probablility that
these two H & S patterns will fail? If so, why? Are we that
convinced of our EW reading? I remain more cautious and somewhat
sceptical about the newer near-term bullish reading. That is all I
am trying to say.
fkarlson regarding your comment, "what about
SPX chart from jtverr on blog
Posted by matt on 16th of Jul 2009 at 12:21 pm
fkarlson
regarding your comment, "what about economic fundamentals". This is a technical analysis website, if you try to incorporate all that stuff, you won't be able to trade.
Keep it simple, just trade the charts. Fundamentals are fine to discuss, but honestly stocks really don't trade on fundamentalsin the short and intermediate term, they trade on emotion of the masses,and technical analysis (chart patterns, trendlines, etc) is quite simply the study/analysis of that emotion or mass human psychology.
Also, stocks generally form major tops when the fundamentals are the best i.e. highest earnings and analyst rankings, and on the flip side, they often bottom and rally when the fundametnals look awful. Too many variables, keep it simple, just trade the charts.
I understand your answer about
Posted by fkarlson on 16th of Jul 2009 at 12:29 pm
I understand your answer about fundamentals, but do not for one minute think any of us are ignoring fundamentals.
The two H & S patterns that I mentioned are technical analysis and have been supported here for quite some time. Does a short bull run to the height of a second right shoulder on the current pattern cause us to drop entirely the probablility that these two H & S patterns will fail? If so, why? Are we that convinced of our EW reading? I remain more cautious and somewhat sceptical about the newer near-term bullish reading. That is all I am trying to say.
I have answered your question
Posted by steve on 16th of Jul 2009 at 12:32 pm
I have answered your question below - PLEASE READ. Also check your inbox. There is nothing wrong with taking your view - just trade it accordingly.