Reflecting Back on Last August’s Chart Dump of 16 Long Opportunities a Year Later
On August 9th of last year, or nearly a year ago, we had a post detailing favorable/bullish looking technical set-ups for 16 different companies.
This is what we said in the post about the opportunities:
“…for those looking for long exposure, these names likely outperform in a material way given the set-ups…”
Here is the original chart from that post and the link to it.
Ultimately, what we’re doing here is trying to suggest that to the average, non-sophisticated investor, it’s not at all about being smart or tying to “get smart” by spending all day reading articles from sententious economic authors/bloggers.
Instead, it has much more to do with one thing – what are prices/charts telling you?
Though simply looking at charts for set-ups doesn’t exactly stroke one’s intellectual ego the way some need it stroked, it appears, nonetheless, to work given that the companies from the original post generated net returns of 36.7% on average over the past year vs. 20.4% for the SPX. Moreover, all but two of the 16 opportunities made money, and every single one represented a double-digit gain with a cool 25%, or 1/4, above 75%.
You tell us, is this type of performance a “random walk” akin to throwing darts?
Remember, this is but one component (i.e., individual equity long/shorts) in what should/could be a multi-pronged approach which also includes various macro calls (i.e., long equities in general, long Nikkei, short Yen, short bonds, etc.).
We’ll let you decide how you want to spend your free time in the future (chart reading vs. economic blogs).