director buying, page-37

Chart is a reflection of all the fundamental, emotional and all the other factors you can throw into the fray. It's like a language, and if you know how to read it, you don't need to know anything about fundamentals of the stock. And dare I say it's better if you don't because it will only confuse you. The only people who really know about fundamentals are the ones who are closely associated with it ie directors or people who work in the company etc. They are people in the know who do know fundamentals of the given stock. All the outsiders like us who just pretend that we do but really we don't and we are just deluding ourselves that we do. And it can be very dangerous, because that may trick you into believing that you know better and eventually when the market proves you wrong you end up with no pants. Stocks like VIL ARE not traded on fundamentals. These stocks are traded on announcements and even more on expectations. Expectation is what drives the stock up. Realisation of an achieved expectation what drive the stock down. ATM chart is pointing to consolidation and possible reversal rally coming. Will it be because suddenly a few dozen traders have suddenly realised that VIL's fundamentals are great - unlikely. Most likely, the rally will come after some silly ann saying "oops, sorry, there is heaps of oil down there, we just didn't drill another 30ft to get to it". It will rally 50%. Who cares about fundamentals. They haven't changed one little bit. Dare I say - fundamentals are cr*p without charting.