Novice ask of TAs/FAs re growth [non-resource] stocks

[Julia]

EW = ?

Elliott Wave (that's all I know, though!)

Hmm.. I just tried to copy and paste a chart from Etrade but couldn't.. Can someone please tell me how to do this?

Rick, others may have a better way, but I just take a screenshot and save it to the Desktop. Then after you have typed your post go to 'Manage Attachments' at the bottom of the page, this will let you access your files, click on the one you want and it should happen.
I'll try now in case I'm giving you wrong info.

 

[MRC & Co]

In relation to BHP: What I was getting at was whether a long-term holder would normally [unless the heavens fell in] allow TA to over-ride FA. Or at least amalgamate the two.

EW = ?

Julia is right as far as posting charts.

You know my thoughts on WOR and LEI, the later stronger both fundamentally and technically IMO.

EW, yes, Elliot Wave. Just another technique you may wish to look at. It is not something I have gravitated towards, but I'm sure it can be used successfully if you enjoy it. Nick Radge, Wavepicker, Tech/a use EW.

Yes, you could amalgamate the two. With your long-term fundamental holdings, you could use a longer term MA if you want to trail a stop or you could use a major support line as a stop, moving it up once another major support has been comfortably breached (good for situations like the recent crash). This way, you will help reduce risk and can still catch large trends. You can also sell once you perceive the company to be fundamentally overvalued or of fair value and buy in on it's next correction/retracement.

In the case of BHP recently, as discussed in the thread, I bought in after the continuation gap closing above previous resistance of $40. This also coincided with it's medium-term downward trendline of November through April, suggesting BHP was ready to buck that downtrend. The stop would be placed below this, around $39 or below the gap. I had BHP fundamentally undervalued at the time, due to recent profit upgrades if I remember correctly. It then gaped up over $42 where the gap was then filled and acted as support. I moved my stop to just below $42. It then ran to $50 and after failing to break, I would have sold. Just one example of where you can use T/A and F/A. Undervalued, got a good T/A entry signal with the gap up above resistance. Usually a good sign, if volume increases and it closes near it's high, that enough effort has been made and momentum will cause it to run further.

I find learning and using gaps one of the easiest and most profitable ways to trade. Either looking for a previous gap to close, looking for momentum (continuation and breakaway gaps) or using them as support/resistance.

I am sure I had something else to add, but it has slipped my mind!

 

[Muschu]

This is a test which in a round-about way seems to have worked - I think....
I ended up saving the chart to 'My Pictures'..... Thanks J & MW.
MW - thanks for the book reference - more work! I was exceptionally quick on picking up on your qdvice on how to enlarge the charts you posted previously...
So - I charted LEI against the All Ords [ASX]. Is this not the XAO? And where does a person find a list of these mystery 71 stocks?
Too many questions....

 

[Muschu]

What excuse can I create when I realised that, in struggling to follow some of these posts, I have sometimes confused my thanks &/or responses to MW with those to MRC. Couldn't be my fault could it? Sorry....

 

[MRC & Co]

On another note, I remembered what I had to add above at the end.

You should seriously IMHO, consider looking into writing (selling) covered calls against some of your stocks once you are more comfortable with F/A.

With the strike price at 'fair value' or just above. This is particularly useful in a bearish market (as per the current situation) and would probably be a good idea on stocks like the banks IMO.

While it sounds complex, covered call options are relatively simple and a great method of producing income on stocks you want to hold. Just make sure they are out of the money (OTM) options. You will gain a smaller premium, but are far less likely to be exercised (afterall, you probably want to keep these long-termers).

Just something else to seriously consider, and a very good 'option' for retirees IMO. You probably won't understand a word of that, check out WayneL link to his blog and book creation on his sig. He is excellent with options and his resource is probably not just far cheaper, but far better than any book you will read! Thoroughly recommened, especially in your case Rick.

 

[nomore4s]

Hi Rick,

Interesting thread you've got going.

I actually learnt a bit re relative strength P&F charts courtesy of MWs posts and I've been using them for a while.

Here are a couple of charting software providers.

P&F - Unfortunately not free, but good value imo, if you are keen on using P&F charting. (You also need to find a data for this software - I use a program called MLDownloader with free data but the program isn't free)

Incredible charts - Free charting software with 18hr delayed data - can pay for 1 hour delayed data. Also has good educational info on charting. Provides P&F charting in the package but is quite limited.

PS - The Eagles went alright for a change, lol - Go the Hawks

 

[Muschu]

"...Just something else to seriously consider, and a very good 'option' for retirees IMO. You probably won't understand a word of that..."

Spot on MRC -- and do I want to? Seriously you, and others, have offered great comments but I also think you're also gaining an understanding of my lack of understanding.
But, at least, as someone said - I don't mind asking questions - even dumb ones. [As long as there are posters with the patience to reply...]

Julia - I recalled after your post that EW = Elliot Wave. Know nothing else about it. I did think my first reaction [East West] was an unlikely probability. Thanks.

"PS - The Eagles went alright for a change, lol - Go the Hawks"
What's this 'for a change' bit nomore4s? Can't you recognise a true threat?

Enjoy your day

R