Editor's Note: Gary B. Smith's column runs exclusively on RealMoney.com; this is a special free look at his column. For a free trial subscription to RealMoney.com and Gary B. Smith five days a week, click here. This article was published Nov. 9 on RealMoney.
I received a few emails before noon Thursday wondering if we were witnessing
breakout. My response was always the same: "Maybe, but let's see how we close."
Why so cautious? Over the years, I've found trendlines and resistance lines to be a hardy bunch. They just don't give in quite as easily as you'd think, and they normally take at least two or three attempts to burst through. Thursday? A great example, as intraday we reversed and closed -- annoyingly, for the bulls -- just under the downtrend line.
That's something to keep in the back of your mind the next time you think talk of resistance and trendlines is just meaningless chatter.
J.P. Morgan Chase
Finally, some administrative notes, where I quite frankly shill ... for myself. One, check out
The Chartman's Top Stocks product. Even if you don't take the trades, it's a pretty good primer on advanced chart reading, and you'll find the Q&A section to be helpful on some of those knotty trading issues. In addition, the number of longs and shorts I feature each day serves as a fairly reliable indicator of market strength and direction.
Two, make sure to catch me on TV this weekend. The fundies have yet to lay a glove on me, but I'll give them credit: They keep coming back for more!
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 a daily technical analysis column for RealMoney.com and produces a daily premium product for TheStreet.com called
The Chartman's Top Stocks. While he cannot provide investment advice or recommendations, he invites you to send your feedback to
Gary B. Smith.