Hi, Eric, and welcome to the funny farm. :-) I'm glad that you hung in there with NXTL last year because you made a good decision. Hopefully you bought more. As to hype, I honestly believe we'll see 55 based on NXTL's chart history sometime this year, as I've oft repeated. Then a pullback to 40-45 at year end.
Everyone has their own views on ta. For me it's been the difference between ho-hum results and "Holy Cow!" returns. Whether you believe my NXTL comments or not re cup and handle, bullish triangles, or divergences in macd & trix is your decision but I KNOW THAT TA WORKS FOR ME. The reason these patterns are helpful is that they show human behavior. Support and resistance, also evidence of consistent human behavior, is good info but it's part of a bigger picture. Have you taken the time to look at weekly charts to see what I'm talking about? Or have you ever SERIOUSLY studied ta? I used to have the same attitude as you until I realized that things happened in the market that I didn't understand. I turned to ta for answers and found them. Is ta perfect? No. Do I use ta exclusively for my investment decisions? No but I won't touch a stock unless it has a pattern that I require. Only then do I do the fundo due dilly stuff.
I don't do windows and I don't do options but I do do lunch. Why? I tried options some years ago and I'm one of the 90%. I concluded, rightfully, that it's not my game. Given that NXTL's short term trend is up, I think selling covered calls at the present time is a sucker's bet. If you sell the closest out of the money contract, you'll probably lose your stock. Then where are you? Out of a stock that is going to the moon in time. Sure, you can buy back in but you've lost your holding period, not to mention capital gains taxes. All for a few pennies. It ain't worth it to me.
Arnie |
