January 2006, Volume 3 Issue 1 Know It - Profit!
"Disk Drive Index Revs-Up Profits"
Happy New Year!
The Airline sector and the disk drive index ring-in the new year with strong trends.
Which is your best play? We'll find out.
But first, see how the broad market indices stacked-up against each other as we put 2005 behind us...
Good news! All the indices finished the year in positive territory.
The Russell 2000 (^RUT) was able to finish the year with a modest gain of 9.79 percent.
The Nasdaq Composite (^IXIC) and the Standard & Poor's 500 (^GSPC) ended up 5.59 and 5.24 percent, respectively.
The Dow Jones Industrials (^DJI) managed to stay in the black with a 1.07 percent gain.
Find out how the indices compared over the year in Market Metrics...
Click Here For Broad Market Analysis
The AMEX Airline Index (^XAL) has taken off... up 44 percent since September 2005!
The AMEX Disk Drive Index (^DDX) is up 248 percent since its low in October 2002. Now, it's poised to break to a fresh two-year high.
For more leaders and laggards, go to Market Metrics...
Click Here For More Stock Sectors
SanDisk Corp. (SNDK) is up over 252 percent from its low in July 2004...
View Current Chart of SNDK
is moving up in an intermediate-term fifth Elliott wave
on the weekly chart.
The Fibonacci price extension from the third Elliott wave is forecasted to reach the $83 to $94 price range.
The trend continues to be strong with the relative strength index moving up through 70.
You may have noticed some sectors will lead for two or three months at a time... while, others will go in and out of favor within the span of a few weeks.
When evaluating sectors and stocks, you must apply your analysis to different time periods in order to get a more accurate picture of likely future price action.
Ideally, each time frame should be in agreement before you place your order.
Until next time...
Russ Schmidt, President
Subscribe to Chart Wealth...
Or... add Chart Wealth to your
favorite news reader, now!
Click Here for Past Issues of Chart Wealth
Discover The "Hidden Order" In All Markets...
Download Your FREE Special Report, Now!
Stock-Charts-Made-Easy.com is not an investment advisory service, a registered investment advisor or broker-dealer and does not imply or suggest which securities you should buy or sell. You should always check with a licensed financial advisor and/or tax advisor to determine the suitability of any investment.
It should not be assumed the technical indicators, analysis techniques or trading methods presented in this newsletter will be profitable or that trading decisions based on their use will not result in losses. Past results are not necessarily indicative of future results. Examples presented in this newsletter are for educational purposes only. Any trade set-up illustrated is not a solicitation to buy or sell a security. The author, publisher and any affiliate linked to this newsletter assume no responsibility for your trading results. Remember... there is a high degree of risk in trading.
The Commodity Futures Trading Commission requires the following statement:
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
Charting Principles |
Forecasting Tools |
Trading Systems |
Charts In Action |
Market Commentary |
Online Newsletter | Bookstore
For the Record | Site Map