Why you must not trade only on charts (unless you’re a day trader)

Because, this…

Man stares at Cardinal Health (CAH) getting torpedoed on earnings

The daily trend in CAH was up… until today.

Boring no-growth healthcare stock CAH is getting destroyed after its earnings report. I looked at it just yesterday and considered buying but decided to just wait out earnings.

You know, avoiding a mess like this is just as valuable as making a genius move that explodes higher that you can tell the world about. Had I bought this I’d have had to come out here and tell you about the disaster, and now I am happy to tell you about a disaster avoided.

cah

To make matters worse, there goes the long-term base breakout that we noted recently in NFTRH. Men who stare at charts can tell you what they have done and even what they are trending toward doing. But ultimately, you must always remember that men who stare at charts are the propeller heads in the back office; the brunt of jokes by the old boyz and girlz in da front doin’ da fundymental stuff.

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