Why charts have limited utility

Stock charts are helpful, but not the be all, end all

I was looking through a list of watch items and came upon NEO.TO, which is something I’ve had my eye on casually for a couple years. Last I had seen it, it appeared to be making a nice bottom, had taken out the SMA 50 and appeared to be on the way to a test of the SMA 200.

Well, it succeeded in that test!

For a day. Tough racket for those buying a breakout and the Men who stare at charts who might’ve gotten excited. This was an obvious example of the TREND being the driver, not a ‘breakout’ that was summarily executed the next day. I like seeing things like this because it makes me continue to realize that I should never pretend that my charts have more to say than they do.* All this one ultimately said was “trend down”.

* Well, the nominal charts, anyway. I find a lot more value in my inter-market ratio charts but that is for the macro work. Nominal stock charts are for positioning (or not) in individual equities/markets.

For “best of breed” top down analysis of all major markets, subscribe to NFTRH Premium, which includes an in-depth weekly market report, detailed market updates and NFTRH+ dynamic updates and chart/trade setup ideas. Subscribe by Credit Card or PayPal using a link on the right sidebar (if using a mobile device you may need to scroll down) or see all options and more info. Keep up to date with actionable public content at NFTRH.com by using the email form on the right sidebar. Follow via Twitter@NFTRHgt.




This Post Has 2 Comments

  1. MikeC

    Metals and miners holding up well today…

    1. Gary

      Problem being that HUI is acting like the commodity complex. Hence, inflation bugs still infest it.

Comments are closed.