On P&F...not to bring up a sore subject, but today's action is exactly the kind of thing I was talking about (even though my thoughts may have been lost when I misquoted Dorsey).
The traditional TA on our stocks looks horrible at the moment. Yet last week the P&F method was screaming buy, buy, buy. Had you done so, you would be sitting on some significant losses.
TA, P&F are fine when the trend is in your favor. However, tea leaves don't mean a damn thing when there are external factors affecting the psychology of the market. If you bought on technical analysis, I would think you might panic and bail at this point. If you bought because of fundamentals, you are certainly uncomfortable tonight, but your perspective is long term and will most likely ride this thing out.
I don't know what the best action to take right now is, but I'm confident in a year our companies will still be around and will be making gobs of money. This is all based on what I have learned thus far of course. Drillers make money on volume, not oil prices right?
Until the big firms cut back on exploration or cancel contracts with big fines, the fundamentals remain the same.
So is the market telling us this will happen? I don't have a clue.
Diamond H
PS I checked into the P&F thread after my misquote last week. Lordy, they were all over me there. Some folks sure take this more seriously than they should, methinks. |
