In This Issue:
Bearish head & shoulder patterns abound...
Leaders also look bearish
Are earnings finally showing signs of life?
Manufacturing and service sectors improve, trade gap narrows
Pollyannas caught on tape
Quote of the week
"Everyone is trying to jump on that bandwagon. There are projects in emerging markets in which I can make more money than I can in the West at the moment." - Nicholas Field of Schroders Plc, London, manager of approximately $11 billion in emerging-market stocks (see article below - Emerging Market Take Record Share of World Equity).
Head & shoulders patterns abound...
The benefit of using technical analysis to make investing and trading decisions is that it removes emotion and the necessity to interpret reams of fundamental and economic data from the decision-making process. The downside of using a technical only approach is that it often provides only short-term insight. As a result, investor and traders with longer-term horizons should use both but as readers of this newsletter witness first-hand each week, the workload and time required to do this type of analysis can be greatly streamlined by relying on charts. Fundamental and technical charts quickly provide an overall snapshot of trends in both stock prices and in fundamentals like earnings and key economic indicators which is far more useful information than single data points....