Yeah, agreed. Haven't read Graham yet, but have read plenty of classics such us Reminiscences of Stock Operater and Phillip A Fischer's Common Stocks and Uncommon Profits.
I think today's action in EXT demonstrates a massive weakness in TA strategy: susceptibility to manipulation by bigger fish. If your confidence comes from the price only, then it's easy for someone else to destroy that confidence by manipulating the price. It's much harder to shake the confidence of someone who thoroughly understands the company they hold.
Since you mentioned Reminiscences, I can't help wondering if anything much has changed from the days when bucket shops would manipulate the SP to hit the stops of their own clients. For instance, it doesn't take much imagination to think that people in the brokerage arm of CBA might talk to the trading desk guys and give reports on where the most stops are sitting etc. Paranoia was one of the main lessons from that book if you ask me.
Z
EXT Price at posting:
$3.92 Sentiment: ST Sell Disclosure: Not Held
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