I bet a lot of people are looking at charts this weekend!
News aside, and if sentiment remains the same(allow a little down side for the extreme of another rate cut), I'm looking more at bottom fishing than shooting pigeons.
That in mind, I'm clumping a bunch of stuff into groups based on a monthly chart
How does this sound?
Off the cliff(weakest)---- low med----med----high med(strongest)
There are some so far that could go either way than their respective group, those teetering on the brink. Those are the ones I'm going to focus on and play according to the direction of the comp.
Am I making sense? I mean like if I have a stock that is leaning towards the high med. from medium and the comp can get through 2650 decisevly, I'll buy a few for at least a position. Aslo I would look at those that show promise from the medium low, and more of a gamble might toss a few dollars into those that are in the "fallen off a cliff" group.
That said, I have looked at some eighty charts so far. Probably another 50 before I OD on it. Then I want to narrow them down to maybe the top five(at most) in each category(paying more attention to those on a cusp). After that, I see how the market is moving.
Now, what I have to think about is how I play them.
Right now, I an thinking if it's a slow steady rise, I go wityh the strongest ones. If it becomes fast and exuberant I lean more towards the long shots. I'm thinking of putting 20% of my money on this thought, maybe a liittle more; however, if the comp has met resistance, all bets off and I just go back to selling the rally, which them might be the opposite of the scenario I mentioned above.
Should I just put on Comedy Central and scratch all this and start fresh on Tuesday? Hahahhahaha! |
