Respect Thy Trendlines

Posted by

Playing in the market’s high octane names requires more than just a working knowledge of a company’s fundamentals and future prospects – it requires some sort of discipline relative to price action.

Guys on TV who claim ignorance or disdain of technical analysis and then lay out the fundamental case for why they’re buying a stock at 10 times revenue are guaranteed roadkill when trends reverse. Because they’re not even trying to identify areas of risk, let alone attempting to mitigate it.

My friend Chris Kimble’s chart illustrates the importance of paying attention to trendlines:

kimble

 

Source:

Kimble Charting Solutions

Follow Chris on Twitter @kimblecharting

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  2. UNICCSHOP commented on Sep 17

    … [Trackback]

    […] Find More here to that Topic: thereformedbroker.com/2014/04/07/respect-thy-trendlines/ […]

  3. Making Money Online commented on Sep 22

    … [Trackback]

    […] Read More on that Topic: thereformedbroker.com/2014/04/07/respect-thy-trendlines/ […]

  4. bitcoin era review commented on Sep 23

    … [Trackback]

    […] Info to that Topic: thereformedbroker.com/2014/04/07/respect-thy-trendlines/ […]

  5. bitcoin loophole reviews commented on Sep 28

    … [Trackback]

    […] Find More to that Topic: thereformedbroker.com/2014/04/07/respect-thy-trendlines/ […]

  6. referensi commented on Oct 27

    … [Trackback]

    […] Find More Information here on that Topic: thereformedbroker.com/2014/04/07/respect-thy-trendlines/ […]

  7. mơ thấy xương người commented on Nov 10

    … [Trackback]

    […] Read More Info here on that Topic: thereformedbroker.com/2014/04/07/respect-thy-trendlines/ […]

  8. devops consultants commented on Nov 18

    … [Trackback]

    […] Find More Information here to that Topic: thereformedbroker.com/2014/04/07/respect-thy-trendlines/ […]

  9. discount wigs commented on Dec 08

    … [Trackback]

    […] Info on that Topic: thereformedbroker.com/2014/04/07/respect-thy-trendlines/ […]

  10. diamond painting commented on Dec 29

    … [Trackback]

    […] Read More here to that Topic: thereformedbroker.com/2014/04/07/respect-thy-trendlines/ […]

  11. Engineering commented on Dec 31

    … [Trackback]

    […] Read More Info here on that Topic: thereformedbroker.com/2014/04/07/respect-thy-trendlines/ […]

  12. sexybaccarat commented on Jan 09

    … [Trackback]

    […] Read More on to that Topic: thereformedbroker.com/2014/04/07/respect-thy-trendlines/ […]

  13. Software Testing Outsourcing commented on Jan 15

    … [Trackback]

    […] Find More Info here to that Topic: thereformedbroker.com/2014/04/07/respect-thy-trendlines/ […]

  14. Midland XTC 300 manuals commented on Jan 24

    … [Trackback]

    […] Information to that Topic: thereformedbroker.com/2014/04/07/respect-thy-trendlines/ […]

HowIInvestMyMoney