PPH was added for technical reasons, FNV for gut reasons
Yesterday I noted the daily chart pattern for which I bought PPH, the Pharmaceutical ETF. Back in February I added FNV per the NFTRH Trade Log (and weekly portfolio updates), and noted it later in this post as we evaluated the prospect that FNV may have been leading the gold sector bounce (it was). I bought, watched it drop a bit further and added more in March.
A subscriber asked about why I added one below its EMA 20 and SMAs 50 & 200 (FNV) and the other (PPH) above them.
The simple answer is one was gut feeling on a then bombed out gold sector with all and I mean all of the touts in temporary hiding, and the other was a technical thing in a relative ‘value’ sector that I wanted to increase exposure to.
I finally took a partial profit in FNV yesterday (also per the Trade Log) and am watching as it looks to the early November gap. But this was a sentiment buy on a premier royalty company and nothing more. Now I’ll try to use TA along with sentiment in making decisions on this and other gold stocks going forward.
PPH was added because man stared at chart, saw pattern and got geeked out.
Man also wanted to increase his Healthcare sector exposure. Here you see this technical buy above the EMA 20 and SMA 50, which I want to see hold. In this over-played manic market I’ll be strict about technicals to limit risk. If you get washed out of a position the market’ll be here tomorrow, I assure you. Adjustments can always be made. It’s a marathon, not a sprint.
For me, a man who stares at charts and uses them extensively, my discipline is to realize that were I working at a brokerage or analytical shop I’d be the guy in the back room that the real analysts make fun of and don’t invite out for beers on Friday nights. They might even gift me with a little hat with a propeller on it that I would pretend was funny but inside would actually hurt my tender little inner TA’s feelings.
Okay, my sense of humor gets a little goofy, but TA is not to be taken too seriously and that is why I make fun of we who twittle our charts and especially we who present what we see in dreadfully serious tones as if we have the mystical answers to the market universe. The best of us know that we are dorks and the even better of us use a whole lot of other tools in conjunction with our charts. That is what I strive for and that is why FNV was bought for a whole different set of reasons than PPH.
I never want to be a TA doofus putting too much importance on that one discipline alone. I don’t respect that in the least.
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