weekend charting 29-01-10, page-52

BeerBaron

If you can get a copy of Stan Weinstein's most well-known book, I think it is "How to make money in a Bull and Bear Market" or something like that, he explains very well, with examples, of how even the best FA means nothing if the chart is falling. ie if it's falling, it's falling and dividends, yields, etc won't stop that. He explains more that stocks have stages (very simple overview is consolidation, uprtrend, plateau, downtrend - Stages 1 to 4).

A modern-day Weinstein is Dave Landry. Got to DaveLandry.com - he's brilliant and his trading strategies are the best I've seen.

I am a huge believer in "sentiment" ruling everything else in a stock.

If something is out of favour it's out of favour, for one of 700 different reasons, and the chart reflects that. How to read the chart and ride the sentiment, no matter how unfounded it might be for better or for worse, is the trick to trading.

I traded EXT a couple of times. I reckon it's simply had a phenomenal run, the resource has been proven, it is very close to its "end game" where the hard work starts. And I'd reckon overall the market thinks so too.

If I get a chance I'll do a few charts this afternoon.