One last post for the chartists:
In fact I find them valuable and I use them. I especially like mitta3's.
My question about their value has to do only with the traders who simply won't take fundamentals into account, something that mitta3 clearly indicated is is bent.
I use charts to compare my shares' performance with other companies within its sector and with the market in general. I also collate particular movements, such as the intra-day squashing of a rally, for instance, with overall market trends. When the two don't look right, the chart is incredibly valuable.
So too if a share rockets off for no apparent reason. Charts are invaluable to be able to see what the patterns HAVE BEEN. But they don't predict what will happen. In cases like those, there are often pump and dumps going on, day traders frolicking, or something happening behind the scenes that will become apparent in days to come.
Far be it from me to discredit the way you trade. I wish you and every trader only success and greater success. The methodology is all that I wonder about. Just as mitta3 posted "but who knows?" yesterday, I agree with him.
Yes, today was an isolated day of great gain. But HOW it happened is far more instructive as to reading into the future than the charts will indicate. The charts won't reflect this:
At the bell, it appeared to be closing at 1.23. Then it was driven down by some 50000 share parcels to an indicated price of 1.21. That's when the big boys showed up and started slathering on parcels of real size and proportion. Over 100,000 in the first instance, and then the nuclear 500,000 one that sat there until the close. The charts will only show that it closed on its high. Big deal. But it was a bigger deal than that imo.
All I'm saying is that just as I don't discredit charts holus bolus, neither should any savvy investor ignore the fundamentals. They underpin everything, and I suppose that that's why they're called "fundamental"s.
The micro trades, the bots, and now today's altogether different pattern need to be factored in and I do. The share has resisted the pressure applied relentlessly over the past month and now, with the ASX300 listing, it lives in the company of other significant companies. I would far rather be invested in a company that is newly listed on the index than, for instance, one that had fallen out of it.
Have a good weekend. Predictions for the coming week? I'm not sure. I wouldn't be surprised in either of these two case: A resumption of steady 1 to 5 cent rises in the sp, or a real jump...a smashing of the 1.30 level and an assault on 1.50.
Just as the charts can't predict, neither can I. I just know that I'm glad I bought in and am holding. Thoughts of selling have to addressed with the following question: With which other company(ies) would I be better placed right now? In the case of GXY and what's on the cards over the next 12 months, the answer is: none. G'day.
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