The power of TV never really hit me until a few weeks ago. Even with the -- so far -- limited reach of the
Fox News Channel
, a fair amount of people tune into the show and actually act on what they hear.
I mean, on the Chartman segment,
and I are on for maybe four minutes, but cut out the banter and maybe you have 87 seconds of "actionable" information. Hey, as good as we are, it just doesn't seem like enough time to make a solid investment or trading decision.
So, I was floored when I walked into the green room a few weeks ago, and Fred Barnes (of the Beltway Boys), was high-fiving me over my
call. "What? You actually
on that, Fred?" And to top it off, Yahoo! has been on a tear ever since, so Fred now thinks I'm a genius! (I played it safe this week and told him my tip was to go get that Lazik surgery done!)
TSC on FOX: Join the discussion on
In any event, I then realized if folks were paying that much attention to the show, and using
to act on my calls, then I'd better use this column and my weekly columns to add a little more meat to the segment.
Therefore, a quick redux of my calls on
As an overview, I was bullish on all three. Despite some fundamental mumbo-jumbo that Adam came up with, all three have essentially the same chart, so it's almost your call as to which one to play. With that in mind, let me first show each original chart that I sent into our producer,
, and then an advanced version of each for further review.
Hopefully, you now understand both the charts and my thinking a bit better. In essence, I know I'm going to be wrong a lot. But if I keep going after trades that give me at least a 3:1 reward to risk ratio, I can still come out ahead even if I'm right only 50% of the time.
And that's the key to good trading: Only act on charts where the odds are greatly in your favor. And if that doesn't work, well, I know a darn good opthalmologist to go to!
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