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"Ring around the rosy, pocket full of posy, upstairs, downstairs, we all fall down..." or so goes the childhood chant. What is going on with this market? We gap up one day, followed by a gap down the next. Finding direction amidst all the noise in the market is growing increasingly difficult.
So let's get back to basics. Just an idea. Lately I have reduced my own screen more and more. I am a chartist. But I find myself looing more at company fundamentals than ever before. I still rely on my charting but I am starting to review the company for solvency. For this I am simply using the stock screener on the Scottrade website. Nothing elaborate, just some basics to show the company will not be seeking a governmental assistance in the near future.
In my charts, I have dropped many of the indicators that were creating more confusion than they were helping see clearly. For my charts, I am still a ScottradeELITE loyalist. I look at 4 different time frames to look from a broad prospective and then narrow into the short term. Nothing flashy or fancy here, just your basics.
This has helped me clear out some of the noise. Granted, in this market, the roar is still very loud. In the long run, I think we will all be better traders having endured this volatility and learning from the situations we may have never seen or seen only once. What are you doing to see through the noise these days? I am interested, as are your fellow community citizens, in your thoughts.
Talk to you soon,
Todd
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