wukan wrote:VituVingiSana wrote:wukan wrote:VituVingiSana wrote:Fundamental Investing primarily relies on PERFORMANCE (profits, assets, cashflow) which does not always correlate with the share price especially in the short term.
@mmandii - It seems that Elliott and Charts are about the "price" more than the underlying financial performance. Do I have this right?
Charts converge all the information. If you do your fundamentals and decide to buy/sell it will reflect in the price. Your behavior will reflect in the chart. When you are unsure about the fundamentals then you will slow down in purchase or sell the securities and that will reflect in the impulse waves on the charts.
So fundamentals precede the charts. In other words, fundamentals are the now, charts are history.
Human behaviour is what precedes everything and you are going to see it in totality in charts which you can use to predict price direction and momentum. E.g. the candlestick charts were codified by a Japanese rice trader(Munehisa Homma) who observed the same set of behaviour in the rice market that emotions have a decisive influence on the price of rice. Fundamentals is just one of the ingredients of the market and as you might have observed in this bear run it's not the most decisive factor.
Charts are not history just predictive models based on historical information.
Let's pick specific stocks and do this.
The reason I am not picking the "Index" is that most investors in Kenya do not buy an index.
So whoever is into charting, put out some predictions (price and time) so we can see if it is for real.
Let's start with those I have an interest in:
Centum
Unga
Kenya Re
I&M
SCBK
DTB
WTK
Kapchorua
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett