Today, something a bit different.
I get many chart requests each week, and they always present somewhat of a quandary. Am I showing a generic, objective view of the chart, along the lines of what
Edwards and Magee
Or, am I presenting how I would trade the stock? Or even
I would trade the stock?
Yes, many people want to know not only my view of a stock, but also if and how I'd trade it with my own money.
So, today, I'll look at a few charts that are of interest, but I'll also annotate if I'd trade that stock myself. If I'd have passed, I'll let you know why. If I'd have taken it (or did take it), I'll let you know how I would have played it (or did).
Before we begin, remember that I pass on a lot of winners, and I take a lot of losers. It's not because I'm dumb -- although you could certainly make that argument -- but because I have a very short trading horizon and some pretty tight money-management criteria. (See my May 3
column for relevant links.)
And as I've often said, my methods are perfect ... for me. They're probably not perfect for you, so when I show a chart in the column, I try hard not to look at it through the filter of my own trading.
Today, I'll add that filter, though, so you can contrast Gary the
with Gary the
. Of note, by the way, are some charts I took that were outside my "GBS Classic" method. The Classic makes up the core of my trading, but I do build on those concepts to take a few nontraditional trades.
The first chart,
Copper Mountain Networks
is one that is part of James Cramer's
Red Hot Index. As I recall, I was asked about this as it traded near its upward trend line.
The next stock,
, makes perennial appearances in my column and was even featured on "TheStreet.com"
Also needing no introduction is
is a chart that came up the night before I put this column together.
has been making headlines recently, and was one of the first stocks I ever bought back in my fundamentalist buy-and-hold days. Wish I had held!
The last chart is
. Boy, I have this one nailed. Too bad I rarely trade it.
So, six charts, either as they appeared or would have appeared in the column. Contrast that with how I would have personally handled each one. As you can see, I pass on some nice winners every single day that hopefully work out for you.
My point, though, is this: Every time I show a chart, I have two goals. One is to educate you on TA; two, to give you some trading ideas you can use.
I sincerely hope you incorporate the ideas you read here into your own methodology. As you can see, that's exactly what I do.
Gary B. Smith is a freelance writer who trades for his own account from his Maryland home using technical analysis. At time of publication, he held no positions in any securities mentioned in this column, although holdings can change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Smith writes five technical analysis columns for TheStreet.com each week, including Technician's Take, Charted Territory and TSC Technical Forum. While he cannot provide investment advice or recommendations, he welcomes your feedback at