With so many distractions today (election results, the fed announcement etc), it’s important to stay focused on the charts. We never ignore the news completely, we just maintain a disciplined distance that allows us to execute our strategy without being derailed by all the noise.


While the media is trying to speculate what will happen to industries like Health Care and Finance, the charts serve as our guide. Take a look at the example above for Express Scripts (ESRX) in the Medical – Services group. In our system, we look for companies with sound fundamentals and identifiable chart patterns. Regardless of the news or opinions surrounding Health Care, this chart is setting up nicely. Although the RS Rating is a bit low, we notice the Industry Group RS Rating and Industry Group Rank climbing dramatically over the last two months. For more on industry groups, see our archived webinar, How to Uncover Leading Stocks in Leading Industry Groups. The benefit of using the charts in your decision making process is that they don’t lie; they reflect the reality of what is happening right now. If story reported by the media changes, they probably won’t know themselves, until it’s too late.


Listening to opinions can get you thinking the wrong things at the wrong times. However, keeping your attention on institutional quality charts and data will make sure you have the relevant information needed to make the right decision every time.

 

Best Returns,

 

Your MarketSmith Team