It works for many lower priced stocks. Here is a Daily chart of Gulf Resources, bought here at a 1-4 split adjusted cost of 88c:
GRUS Daily
Another look:
GRUS Weekly
What do these three charts have in common?
(1) Trend following trading systems;
(2) Profits;
(3) No fundamental input whatsoever, no sectors, prospects nor rumors.
Not a bad time to take another look here.
A
(2) Profits;
(3) No fundamental input whatsoever, no sectors, prospects nor rumors.
Not a bad time to take another look here.
A
9 comments:
Allan If you look at your GRUS weekly, could it be forming a cup & handle
....which implies a few weeks of sideways action and then another leg up.
Allan,
You have any criteria or recommendations for picking 'trading vehicle' stocks ?
Perhaps I'm being over-simplistic, but it looks to me that if I invest in this blue software, I can make a living trading the ups and downs of 1 or 2 stocks!
Maybe I'm still caught in the fantasy of the late night infomercial on 'BETTER TRADES' I watched last night where many 'regular folks' boasted making a gazillion dollars on trades......lol
Tell me I'm on to something or pinch me and wake me from this dream ????
Insomnia
A must read! "An Overview Of The Fed's Intervention In Equity Markets Via The Primary Dealer Credit Facility".
Read it at http://www.zerohedge.com/article/overview-feds-intervention-equity-markets-primary-dealer-credit-facility
Eric
Eric ! This is exactly the whole issue ! Absolutely a Must Read.
you gotta love Zero Hedge.
Thanks for posting this.
Eric,one question,if you have any thoughts on the matter.
Since it suggests,as I have suspected,the u.s. governments total control of and manipulation of the stock market... do you think foreign markets are still ,for lack of a better word,'trustworthy' free markets,worth investing in?
I mean, is it possible to invest in foreign stocks,on foreign markets,(in foreign currencies) the way Peter Schiff recommends ,with his brokerage (expensive commission as it is)
and still be investing in a legitimate market system? non U.S.?
Any thoughts?
I am not an authority on foreign stocks and their related markets and would leave detailed comments to another reader of All Allan. However, I do beleive the intervention is limited to the U.S. but indirectly impacts the foreign markets. If one was inclined to to invest in foreign stocks I would do some research to determine if the Country's economic fundementals support the bull market. At some point this intervention will have to be unwound and when it is the impact will be far reaching.
Eric
and thats what happened to global markets last year,they all crashed. its a big question this time around whether they will all fall in synch or some will hold up better this time.
when you look at china (shanghai composite) it looks like they already had a good correction this summer, and are working their way to establishing some support level...I think around the 2900 area on their index.
Maybe that will mean something in the future.
Regarding the Zero Hedge article:
http://disasterporn.blogspot.com/2009/10/federal-reserve-and-conspiracy.html
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