Technical Analysis: A Risk Management Tool, Not A Predictive Tool.
Back in the day (from 2014) I ran a blog where I published all most of my ideas/thoughts (over 1800 posts in total). One of them 5 years ago today (06 October) was EOH where I reviewed the MONTHLY share chart, arriving at the conclusion that the long term risk was to the downside. While earnings were growing at a rapid pace and management could do no wrong, the MONTHLY chart suggested that there was potential for a double top technical formation. Original post added to this chart (edit: seems like the original post could not be added).
Most people talk about 'having an edge' in markets. In a market run by algo's and big institutional money, it's hard to think you have one however if you were to ask me what mine was, I'd probably say that I have the ability to 'step back and see the bigger picture'. I've posted about monthly charts on here before. The question is: What do you need to SELL TODAY so that in 5 years you could look back and say you made a great call by getting out at a healthy profit or, where is there most doubt but in 5 years time everyone could love the sector or name.
John Maynard Keynes described investments as a beauty contest where judges are rewarded for selecting the most popular faces among all judges, rather than those they may personally find the most attractive.
Most recently, the Co-head of our trading desk, RobP recommended EOH below 500c. It traded as high as 830c today!!!
Want to know how we are seeing things over the long term as well as in the short term? Get in touch today.
Back in the day (from 2014) I ran a blog where I published all most of my ideas/thoughts (over 1800 posts in total). One of them 5 years ago today (06 October) was EOH where I reviewed the MONTHLY share chart, arriving at the conclusion that the long term risk was to the downside. While earnings were growing at a rapid pace and management could do no wrong, the MONTHLY chart suggested that there was potential for a double top technical formation. Original post added to this chart (edit: seems like the original post could not be added).
Most people talk about 'having an edge' in markets. In a market run by algo's and big institutional money, it's hard to think you have one however if you were to ask me what mine was, I'd probably say that I have the ability to 'step back and see the bigger picture'. I've posted about monthly charts on here before. The question is: What do you need to SELL TODAY so that in 5 years you could look back and say you made a great call by getting out at a healthy profit or, where is there most doubt but in 5 years time everyone could love the sector or name.
John Maynard Keynes described investments as a beauty contest where judges are rewarded for selecting the most popular faces among all judges, rather than those they may personally find the most attractive.
Most recently, the Co-head of our trading desk, RobP recommended EOH below 500c. It traded as high as 830c today!!!
Want to know how we are seeing things over the long term as well as in the short term? Get in touch today.