fone geeks,Fair comment. Sure there's lots of scary potential...

fone geeks,

Fair comment. Sure there's lots of scary potential problems - eg. read HedgeJob's derivatives article.

However, as we all know, the markets factor most events in 12-18 mths out. And I know if I trade on news and possibles/likelies I'll never make money. Or we might have a terrorist act out of the blue - however IMO if the chart suggests to me a bottom then I'll go with the chart everytime.

Just consider people claiming over the last year that China etc will hold our market together etc etc. It was clear this was'nt going to be the case mid-last year. This was clear from the charts - base metals prices starting falling early last year, the indices clearly began topping out June-Aug last year and the implications were the markets were predicting a sigificant future economic slowdown.

If I'd been a bull sticking with the China story I'd have lost a bucketload on the way down. Also consider its always darkest before the dawn and the markets will go up well before economies begin showing improvement.

So I don't disagree with you but it's not going to stop me taking positions based on charts.

Cheers