a reminder of how to trade well, long term or short term:
below, a copy of, in part, what i had to say about aet last November
look at it now...
good example of how you can use our knowledge of economic cycles, in
this instance K waves, then a charting knowledge to wait for the break
of accumulation, being use of Gann, then the new highs list, use of
what phil teaches.
for examining longer term investing in stocks, here is an example. This
follows on from what I try to teach in class.
aet,
dividend cut, expense write downs; often signs of a low forming, and aet
has done all that last year. Relate this info (from say the company
annual report) then to the chart. Above 40 is a break of accumulation,
(see your weekly chart) tho in this instance the pattern is not as good
as it could be. Nothing cures high prices like high prices. aet is
linked in with the commodities business, more particularly, supplying
smelter technology. But its new higher tech stuff requires application
to new smelting projects. Higher commodity prices will force this to
happen eventually, when aet should win more contracts. (There is only
one market where supply and demand to not equate and this is in the
market for land and other government granted licenses.)
Smells of a low to me. aet price should recover as more projects seek
to apply the aet technology. But of course this is an if, which is why
we always use a stop loss, and if triggered, do not hang on to a losing
trend. Please note also, this is not in any way an invitation to buy
this stock. The example is given as an extension to my classes. You
should do your own work and make your own decision, then be responsible
for it.
