MG, Re: Second Look
Well stated.
Labor Day weekend I labored to add monthly trend lines to my charts. I found the following to be within their monthly trends: ALD, AXP (at the time), T, BEL, BA, CAT, DAI (now), DIS, ERICY (now), GM, GT, GTE, IP, JPM, MCD (now), MMM, NB, PEP, S, SC, SBH, TRV. This represents about 1/3 of the Big Boyz list.
I was toying with CAT, MCD, or TRV. I show the bottom monthly trend lines to be 39, 48, and 36, respectively. Caveat: I manually draw these lines across some ten years or so, and could easily be off a dollar or two or three. BTW I show the bottom trend line to be 34 for KO -- a bit pricey IMHO (but that doesn't mean TA doesn't signal a short-term buy).
As I noted the other day, you got to almost do the opposite of the day traders. For example, there was a LU gap-up yesterday, and it never got higher. The risk is holding overnight, but no risk, little possibility of reward lately.
Berney |
