AET - banks, credit and fear, again - emailed to subscribers - Mon, 24 Apr 2006

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.

Chart - AET Longer Term
Chart - AET April 2006

Print This Page
Home ----- Contact Us