How can you possibly understand the market without looking at the charts? How can you possibly gauge the activity and appetites of the buyers and sellers – the price setters – if you don’t study price itself?
Of course you can’t.
The only real question is concerning what time frames to pay attention to when assessing trends. I look at weekly closing prices for individual stocks and monthly charts for indices and asset classes. Anything shorter on either and all I’d do is get faked out and miss the forest for the trees.
Markets are made up of the prices people are willing to transact at. Prices contain information. Learn to look at price just as you learned to look at fundamentals like profitability or balance sheet quality. Learn to look at price just as you learned to look at intangibles like “brand” and “management” and “competitive moat” and all the rest of that stuff.
So, anyway, this is why we created Big Trends Monthly, where my friend JC Parets walks us through the monthly candlesticks that he feels are the most expressive about current market conditions. And I don’t ask questions as a technical analyst, I ask questions as an investor or an asset allocator would.
It’s a a brand new format, I don’t think anyone else has ever done it before. Subscribe here on YouTube and you’ll get the October chart rundown as soon as we put it out.