Gottfried, I think it would be difficult to make stock investments on the basis on any charting system. That would be dumb Idea 1 through 4. Other equally dumb ideas are buying stocks based on any other solitary indicator, such as PE, PS, BTB, Insider sales, insider buys, or because a stock is cheap on a historical basis.I know a few investors that write covered calls based on the premium obtainable. This is another dumb idea.
Your charts are very useful in that they report where we have been before, and where we might go, if market forces co-operate.
Your charts are not predictive, because there are hundreds of factors that will influence the final outcome.
Time to watch the final four and see if Michigan State is as good as statistics indicate.
Regards, Jerome |
