Marketgems Earnings Trader- Trading Strong or Weak Earnings Growth

[jenna]

Earnings season and pure "charting" don't go together. The real valuations and their inability sustain themselves are revealed and quite ominously. Before earnings season, we have window dressing, sentiment, irrational exuberance.

http://www.marketgems.com/The_SHORTING_of_the_Blimps.htm


Marketgems expects that and waits for the BURSTING BUBBLE during earnings season. At the same time we have quite a decent amount of lower priced and undervalued companies that SOAR why? Forget if you think these are CHART PATTERNS that break out. So AMZN, SNDK, CCMP, JCOM NVLS INTC and CSCO pulled back because of overbought charts or because they 'were due for a correction' Well the SNDK 30 point correction doesn't quite convince us. Nor does the complete breakdown of companies like AMZN, INTC, KLIC, KLAC, NVLS, QLGC. KLIC has moved BELOW SUPPORT and heading below 13, where we haven't been able to take it since late OCTOBER. SO if you are buying dips, you are getting dipped. That's a laugh, only folks that are still buying dips are not laughing.

CNET had a crappy chart as did many of our breakouts including AKAM. CREE had a nice chart but not explosive prior to the report. INSP was just consolidating before it exploded Are traders naive enough to explain their gains through cycles, Eliot waves, tic toc toe charts or even candlestick chart buy set ups. GET REAL TRADERS!! I suggest you keep FAR AWAY from pure chartists, horn blowers, and those with unrequited love in the sectors who are getting hit the most. Earnings season is the time of year they lose their money, show their real prowess in the REAL MARKET CLIMATE, and if you are following them, you can lose with them.

This is a problem with charting. Charts make sense in hindsight, and can be used to confirm one's opinions, but they cannot replace knowlege, intuition, or fundamentals. That has been the truth for going on 6 3/4 years and will no doubt continue to be the truth in the next 3 1/4. At our 10th anniversary, (G-d willing) we'll prove it even more conclusively!