Fidelity Select Sector funds Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Fidelity Select Sector funds

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Dennis who wrote (1244)	11/23/1998 6:19:00 PM
From: Jim Battaglia	Read Replies (2) of 4916

"will traditional TA work on select funds??" Yes of course they will but we need to understand some specific rules: Technical Analysis (TA) works better with funds than it does with stocks because of the time lag factor. The fund does not jump up and down thus avoid whipsaws like stocks tend to do. Because of its diversification it will be a smoother transitional change. You can see this with your computer. A computer can help you track and analyse more markets in depths. A computer allows you to use more indicators and spot more opportunities in the markets. The computer was made for (TA). There are three major groups of indicators: But rememeber indicators can often contradict one another. Some of them work best in trending markets, others in flat markets. Some are good at catching turning points. Most people look for a single indicator--"a silver bullet" to kill the confusion in the markets. There are draw backs with that however. A serious trader needs to know which indicators work best under different conditions. Before you use any indicator, you must understand what it measures and how it works. This will give you confidence in the signals. There are trend following indicators, Oscillators and then Sentiment indicators. The moving averages serve as support and resistance zones. A rising MA tends to serve as a floor below prices, and a falling MA serves as a ceiling above them. That is why it pays to buy near a rising MA and sell short near a falling MA. In INVEST-N-BEST, we use both Trend following and Oscillators with Select funds and the total world wide list of funds. I personally like Relative Strength also in deternming the proper fund to choose. Bottom Line: Yes TA works!!! For some initial further reading on TA and charting with a computer, read "Trading for a Living" by Elder. Another book entitled "Demystifying Wall Street" by Sanstrom is a excellent book on TA. Jim

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next