About
Technical Analysis focuses primarily on price performance and assumes all public, fundamental information about a stock or index is reflected in that asset’s price at any given point in time. Also, Technical Analysis places the sole responsibility for determining the accurate “value” of a stock or index on its supply-demand relationship.
EM Trend Advisors applies a wide variety of Technical Analysis disciplines to help determine when a stock or index is approaching a level that will likely make “the crowd” react. Our unique application of technical analysis seeks to illustrate when an asset is getting close to an emotional trigger point. These points are usually defined by lasting trend lines, range boundaries, and historic support and resistance levels. Armed with this information, clients can better position their portfolios to catch a market move.
About G. Edward Gruber, CMT
In his fourteen years of trading experience, Mr. Gruber worked for two separate asset managers each with $50 billion under management. He also worked for another manager whose small cap assets grew from $700 million to $7 billion during his time there. One of the most formative periods in his professional experience was the downtrend from 2000 to 2003 and the subsequent uptrend from 2003. Those drastically different trends can not be entirely explained by fundamentals alone. When the overall market was bottoming in 2002-2003, many, many stocks were accused of having “deteriorating fundamentals” and these stocks were widely thrown away for dead. This mentality was most prevalent very close to major upside reversal price points. That begs a question. Do fundamentals change that rapidly or are there other forces at work that help determine asset prices?
A key component of our service is the disciplined focus on Technical developments in stocks and indexes. Our focus on the Techncial side of the market essentially filters out what it is said and zeroes in on what is being done. Do trading volume and price direction confirm each other? If a stock is rallying on relatively weak volume, that is a huge red flag that buyers are tiring. ”The market” is nothing more than a large group of people who are all interested in the same thing…capital appreciation. When these people collectively respond to a news item by buying or selling a stock or index, many clues are offered as to the level of conviction among market participants. We are available before, during, and after the trading day to technically evaluate a stock or index. Do you want a different perspective on stocks or index analysis? For more information on how our disciplined application of Technical Analysis can help you achieve superior investment results, contact EM Trend Advisors at support@emtrendadvisors.com.