Articles for: ASX

The great Jesse Livermore (1877-1940), regarded by many as the greatest trader who ever lived, said: “Speculation (i.e. trading) is nothing more than anticipating coming movements”.

Copper is an important driver for our market in that it is a bulk commodity that the world still wants and we have in abundance.

Top Down Analysis involves determining which stocks have the particular combination of factors – technical, fundamental, economic or political – that constitute a profitable trading opportunity.

To paraphrase the Ralph Waldo Emerson quote with which W.D. Gann opens his first book, The Truth of the Stock Tape, no man can learn what he has not prepared himself to learn.

Well much has happened in the last week and if I was writing as I did last week on the mother of all share indices – the DOW – I would probably have taken an even harsher view.

And yes, I might add, we would like it to get better. So true – but we do have to take what the market dishes out.

I hope opening with the chart for the All Ords won’t bring back too many scary memories:

When you look at a line chart of the DOW or All Ordinaries and ask investors to look back and point to where they would like to have bought in, almost without exception they point to the major retreats that we call ‘pullbacks’.

In the last issue of the Trading Tutors Newsletter, Chief Editor Tom Scollon offered some interesting insights into how he weights one sector to another.

The phrase “resistance becomes support” has been taught, traded and no doubt even argued by many a trader over the years.