Five Stocks Stare Down Resistance
This column was originally published on RealMoney on Nov. 14 at 8:30 a.m. EST. It's being republished as a bonus for TheStreet.com readers.
My traditional view of technical analysis is that it's best in the short-term. A recent email, though, made me at least rethink my views.
Gary, I've enjoyed your articles over the years and today's article raised a question in my mind. Although this may not be answerable, I wonder whether (using TA) you have been more successful with short trades, as opposed to long trades. Could this be a topic for a future article or if you've already addressed this, could you pass along the reference? Keep up the great work. -- F.O.
That question is a good one. I used to think TA was more effective in the short term, and if pressed, that's still my basic belief. However, over the years I've seen trendlines, support and resistance work in a wide variety of time frames, including weeks, months, and even years. For some good examples, check out my column on "long-term stocks" I showed a few weeks ago.Today, the Dow Jones Industrial Average, Altria (MO), Citigroup (C), Qualcomm (QCOM), AMR Corp. (AMR) and nVidia (NVDA).
And that is the final word from MCI arena, where the Washington Wizards are quietly working their way into one of the NBA's best teams. Of course, until they win a championship, they'll always play second fiddle to the ever-disappointing Redskins.
P.S. from TheStreet.com Editor-in-Chief, Dave Morrow:
It's always been my opinion that it pays to have more -- not fewer -- expert market views and analyses when you're making investing or trading decisions. That's why I recommend you take advantage of our free trial offer to TheStreet.com RealMoney premium Web site, where you'll get in-depth commentary and money-making strategies from over 50 Wall Street pros, including Jim Cramer. Take my advice -- try it now.
Charts produced by TC2000, which is a registered trademark of Worden Brothers Inc.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV