The charts I show below have been stripped of all identifiable information and made as generic as possible. Not knowing what the stock is, what the price is, or any other information other than a simple chart what would be your buy or sell inclination for each of the three charts shown?
By removing all identifiable information we are removing all bias. Without knowing the stock symbol you won’t be able to base your buy or sell based on a likeness or hatred to a particular company. It is just simple chart analysis in its most basic form.
If you figure out the stock symbol of any of the charts shown below please don’t let the cat out of the bag in your comments. I want to keep these charts anonymous until I reveal on Sunday what stocks they are.
The only information I can give is that each chart is a daily scale and the span is at least one year.
CHART 3
CHART 6
CHART 4
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{ 16 comments }
Buy, buy, sell.
But even though the risk/reward ratios are obvious some kind of longer-term technical analysis or maybe even fundamental analysis would help determine the odds of those trades.
Sell, sell, sell,
I wouldn’t buy any stocks here.
ok I’ll give it a try
chart 3
No buy. It broke out of a downward channel but then hit a resistance and fell back in so not really a sign of strenght I would say.I wouldnt short it either beacause it could find some support on the previous low.
http://i47.tinypic.com/2dnvww.png
chart 6
I might buy this one because it broke out of a descending wedge but i think i would wait for a pullback or consolidation first.
http://i45.tinypic.com/vi2zxg.jpg
chart 4
No buy. i think this stock is running into a lot of resistance. so no good risk reward ratio.
http://i49.tinypic.com/2pyzwk4.png
If these are medium to longer term plays, then I would do the following,
chart 3 = buy
chart 6 = buy
chart 4 = sell
Buy, buy, sell.
Depends on sector growth though
The first 2 charts are a screaming buy and the last one I don’t know. I would wait on the last one to see where it goes. Buy the first 2 charts and a hold on the last one
In Chart 3 it seems like the stock is trending down for long time, also it looks like the down trend is ending. This could be a buy signal if other technical indicators confirm.
Same with Cart 6 except that the down trend is not ending yet. This could be a wait for few more days and buy if other technical indicators confirm.
Chart 4 is in uptrend and will be going up for few more days before its going to swing to down trend at that point it could be a short sell. Again this has to be confirmed with other tech indicators.
I would BUY all these stocks[ I am a born sucker] at 9:10 AM CST if they made new highs on the day with 10 percent of my free capital and a sell stop either on new lows for the day or of 2%loss stop price— then mortgage my farm and family to sell short on new lows after 1:15 CST and margin up if the lows made profit. If the third Thursday of January was lower than today I would beg for TARP funds to add to my shorts.
If the third Thursday of January was lower than Dec’s low I would, in desperation, call the queen of England [collect] for funds to sell short.– but what do I know? I would be out by the 6th of May with all profits and wait for a bounce, but there would be no bounce and I would have left a ton of profits on the table but I am not greedy.
BTW
#3 is a chart of Obama’s health care proposal break out- #6 is a chart of rotting cabbage-# 4 is a chart of the hormones of a poker player who is faking it because he has nothing.
Chart 3 – VXX ?
Chart 6 – SRS or one of the other doube shorts?
Chart 4 – ES?
I would buy all 3 of them but the last chart you have to wait for a pullback.
One missing ingredient – Volume! Chart 3 and 6 are still sells and Chart 4 looks very interesting for a nice short! Big Volume (distribution) would nail it for me.
Personally,
I am 70% fundamental analyses and 30% technical.
I personally would never purchase any stock without the F/A.
Therefore, I would not purchase these stocks due to the lack of profitability
information, both current and forward looking.
I try to use audited GAAP accounting for the overbought / oversold, and GAAP estimates for future.
I somwhat agree with Scott. There isn’t enough info here. Without the least amount of fundamental information I wouldn’t touch them.
you two are missing the whole point here Guy an Scott…
Nope
This test has nothing to do with the particular stock that is on the charts; this test is about the mentality and perception of the individual trader. It clearly illustrates why many of you have been losing money by shorting one of the strongest rallies in recent history. Ever heard of the trend is your friend? The first two charts are in obvious down trends yet everyone wants to catch the falling knife because they think it is “cheap” and a good bargain or short the run away train because they think it is “overbought”. The key word in stock market is market. If you buy a stock shouldn’t you buy the one that has shown that their are others that are willing and able to buy it from you at a higher price and vice versa if you are short? When the trend changes you and everyone else will know it…stop trying to be the first to the party by top calling and bottom picking.