Forum Archive Index - October 2003

[fntradingsolutions <fntrade@bigpond.net.au>]

Here we go!

 

If I was to purchase ASX AMP on fundamentals 2 years ago I would have lost thousands. At $36.00 it was considered the jewel of Aussie investments. A strong Aussie company with a great Future.

At $25.00 it was still a fundamental Buy favoured by many FA traders and Brokers.

At $15.00 Fundamentals were still telling us how strong a company AMP was and still BUY BUY BUY was the cry of all the experts.

 

HOWEVER!!!! at $25.00 my charts were giving me Major sell signals. I did not own the Stock but I then at $25.00 bought several contracts ( Option PUTS )  and rode them down all the way to $5.00. I banked the TA story.

 

Chrysler was given up the ghost by every Fundamental expert in the states: The Chartists dissagreed while the TA were buying the FA were selling. within a couple of years Chrysler stock went thru the Roof.

 

Enron Fundamentally a great company However creative accountancy proved otherwise, the TA Traders were selling while the FA traders were buying.

 

Even Warren Buffet got it wrong with the Tech stocks. He is great friends of Bill Gates However he holds no Microsoft stock.

Because all the FA believed that a company selling only software for Computers that would be on desks!!!!! ho hum could not possibly make money. Yet a 45o line drawn from the lowest low showed a steady rally from 1989 till 2001.

 

Likewise WB holds no Intel stock, no Yahoo stock, no Microsystems stock, no IBM stock no Apple Computer stock and no Pixar stock, all for the same reasons, the Fundamentals were not good.

 

Woody

 

NOW I HAVE STIRRED THE WATER!!!!!