The chart below of the S&P 500 index depicts the consolidation pattern of what many refer to as a double bottom (green lines). The break higher occurs when the price eclipses the apex between the two respective bottoms. This is an indication of positive sentiment from investors for a change or switch in direction. If the break higher on Tuesday is [...]

Why are the charts always right? First, they represent the market’s opinion relative to value of a given stock, sector or index. Regardless of our opinion the chart will always reflect the consensus for value. If you buy a stock and the chart is falling in price you are going against the trend or consensus [...]

I wrote “Trends Develop and We Follow” recently for the sole purpose of getting back to the basics of building a disciplined strategy for managing money. Too often as investors we get sidetracked with all the software, back-testing and holy grail investment philosophies and we forget the simple basics of money management. There is nothing wrong with learning [...]

Here is an excerpt on Setting ENTRY, EXIT and TARGETS from the Video CD Series Making Money Regardless of Market Direction

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Following trends is one of the easiest and simplest methods of investment analysis. However, in our pursuit to find an edge, we want to pinpoint the beginning or end of a trend. In the process of attempting to do the impossible we develop a disease, ‘paralysis of analysis’. Take a step out of the forest and adjust [...]

The last two weeks have been a tug-o-war with the buyers and sellers. However, yesterday’s buying showed signs of the bounce gaining the advantage and a potential move to the January highs on tap.
The move yesterday overcame negative overseas data and focused more on the U.S. economic data to push higher on the day. The [...]

What happened to the positive momentum from the fundamental data? Focus has shifted to what might happen versus what is happening. In other words the FEAR factor is winning. Too often investment logic incorporates about 80% emotion. Case and point, what is taking place in the U.S. markets over the last six weeks.
Greece and other European countries [...]