|I Will Go My Own Way
|March 20, 2007
Interactive Stock Table
Why poke around individual stock profiles when you can get everything you need in one place? The Trending123 Interactive Stock Table lets you see critical data for about 8,000 stocks at a glance in a single, sortable table. For example, let’s say you want to see what stocks are closest to their 52-week highs. All you need to do is click the column header “52wk%” to sort all 8,000 stocks. Or to focus on a specific sector, click the name of the sector at the left. Finally, if the option you want isn’t displayed, click on the drop-down menu to choose from several others, such as P/E, EPS, and dividend yield.
Because it was created by our founder, John Lansing, you won’t find a tool like this anywhere else. Originally, it was meant for John’s eyes only, but due to overwhelming demand from investors who wanted to know how he achieved his success, we’ve made it accessible to Trending123 members as well. And now you can try it, too—and save yourself 8,000 pages of reading.
You’ll have to excuse me but I just got the Fleetwood Mac song, Go Your Own Way stuck in my head. It makes sense when you think that I’ve been keeping close tabs on the chip charts.
Just like a headstrong child, the chips aren’t interested in what the rest of the market has been doing. They only want to do what they want. And for the past seven months, it seems they want to go in their own direction!
Since October of 2006, the chips have been stuck in a rectangular range. Looking at the three major semiconductor indices — the SMH, GSM and SOX — they are all eerily identical. From October to March they are simply, inexplicably range-bound.
Now let’s see, what could cause this? Has anything significant happened in the market in the last seven months? Hmm…this is a tough one. Ah Ha! That’s right we’ve had a major rally (last October) AND a major market decline (February 27 — and it’s not over yet).
Given that we’ve witnessed both a rapid rise and a swift decline during the same time that the chips are marching along sideways, how could that not be significant? We are having a techless rally an equally techless correction?
This was eyebrow-raising when the rally got us riled up in the fall. But as weeks became months the intrigue grew. Then the floor dropped out underneath the rally. And the chips have yet to participate in the downside of the sell-off.
This range-lockdown will not last. Believe me, it just cannot last.
I can smell the potential for change. It’s making my nose twitch in anticipation for what’s to come!
Five Things You Should Know About Technical Analysis
Just like fundamental analysts can go on forever about P/E ratios, book values, and cash flow, technical analysts can rant and rave all day about this and that oscillator, indicator, or chart pattern. Knowing those things isn’t bad, but for a beginner, hearing all that information at once can be overwhelming. And confusion won’t make you money. That’s why we’ve boiled it all down to five things you need to know and understand about technical analysis.
1. The news is in the charts. You can read the paper religiously and watch the news every night, but in today’s instant-replay world, the reality is that by the time you hear about it, it’s already priced into the stock’s chart. So where do you think you’re going to see more profit—the newspaper, or the charts?
2. Trade the bear. Ride the bull. The first step to all technical trading is identifying the trend you’re in. In a bear trend, you go short. In a bull trend, you go long. But the maximum gain of a short is 100%, so you don’t hold shorts in a bear trend forever, you trade them for a smaller gain and get out. In a bull trend, your gain is unlimited, but the stock never goes straight up. Trying to catch every top and bottom is a loser’s game. Just buy it and ride it until it hits target.
3. Trade the setup, not the analysis. Technical analysis can change fast, and even though the initial analysis may be right, a trade may take longer to play out than you can afford. You don’t want your money sitting around, you want it making more money. Trade the setup, and if it doesn’t work out, move on to something better. And don’t chase trades. There’s always an opportunity around the corner.
4. Know your enemies. There are over 4 million chart patterns, and all kinds of indicators and oscillators. But in the final analysis, there are a handful of patterns and indicators that provide the best risk/reward scenarios. Don’t let the data overwhelm you, and don’t let your emotions fool you. We set the sights on winners. You pull the trigger.
5. Get your facts straight. Some people think technical analysis is a new-fangled fad. That’s because they don’t know their history. Candlestick charts were invented by a Japanese rice trader, Munehisa Homma, in the mid-1700s; the Dow theory was published a century ago; and Elliott waves have been with us for over six decades. And we have two advantages over all of our predecessors: years of study that has proven the effectiveness of technical analysis, and computer technology that makes it faster and easier than ever.
Now that you have the basics down pat…it’s time to put your newfound knowledge to good use! Try a risk-free trial subscription to Trending123!
The stocks in the chip sectors that are down the least from the 52-week highs are the ones with the most potential to make you money. This is always the case—it is much more significant to judge a stock by how much they are down from the highs because this is where the money is going to flow.
And right now I’d say to keep a watchful eye on Brooks Automation (BRKS), Tencor Corporation (KLAC) and Varian Semiconductor (VSEA) because these are the stocks that are poised to be the frontrunners. But I highly encourage you to visit my interactive stock table to check out the complete list. (You can only access this tool as a Trending123 subscriber—become one today for FREE!)
Be alerted when I’m ready to pounce on these frontrunners — give my Trending123 service a risk-free try today. Or you can start with a cursory glance around my site first: trending123.com.
P.S. Technical analysis is still the new kid on the block in investing circles, generating plenty of buzz, but most people have no idea how it works. You can! I’ve been using technical analysis successfully since the 1990’s. Now let me share my “sudden profit-making” advice with you—and for FREE—here.
P.P.S. Sudden profits are possible. I’m talking about stocks that you can get in and out of quickly for 10%–30% gains. Some examples that my Trending123 subscribers have already taken profits on: Research in Motion — up 21.24% in 2 days, Superior Well Services — up 18.10% in 1 week and Garmin — up 26.31% in 1 month! Join us for the profits on the horizon.