Dorsey's “Saturday Seminar”
September 14th 2008 19:04
My old friend Tom Dorsey co-founder of Dorsey Wright & Associates conducts a seminar called “Saturday Seminar” - A Game Plan For Investing In The 21st Century. You can watch it at the Trader's Blog.
Tom Dorsey and I have known each other for probably 20 years. To me he is the father of Point & Figure charting. His book "Point & Figure Charting - The Essential Application Forecasting and Tracking Market prices" is a staple for investing, for getting the big picture and sits in a prominent position near my desk.
Point & Figure charting concerns itself only with price, not time, and allows me to follow a whole number of stocks, industries and markets in a few minutes. It gives you a macro outlook. When you see something interesting develop here you can go to Trading the Triangles for a micro look. Or you may find something in the micro world and you can go to the point & figure charts for a macro look..
For example, in the macro world you may be following the stock market. Using point & figure charts, you know that the bullish percent cycles back and forth between under 30% and over 70%. Suppose, we are now under 30%, meaning only 30% of the point & figure charts of stocks are bullish. That's the time you want to go to your micro charts and look for monthly charts that are flashing bullish signals or are near to crossing bearish trendlines.
Take another example. Suppose, you hear about a gold stock. You pull up your Trading the Triangles monthly and weekly charts and it looks bullish. Is it a fluke? What does the industry look like? So you go to the macro point & figure chart of the Gold Producers to see if the industry is bullish or about to turn bullish.
Here's a [D][F1!3!!!4!20]&pnf=y]point and figure chart of GLD, the Gold ETF that clearly shows the break in the market:
Tom Dorsey and I have known each other for probably 20 years. To me he is the father of Point & Figure charting. His book "Point & Figure Charting - The Essential Application Forecasting and Tracking Market prices" is a staple for investing, for getting the big picture and sits in a prominent position near my desk.
Point & Figure charting concerns itself only with price, not time, and allows me to follow a whole number of stocks, industries and markets in a few minutes. It gives you a macro outlook. When you see something interesting develop here you can go to Trading the Triangles for a micro look. Or you may find something in the micro world and you can go to the point & figure charts for a macro look..
For example, in the macro world you may be following the stock market. Using point & figure charts, you know that the bullish percent cycles back and forth between under 30% and over 70%. Suppose, we are now under 30%, meaning only 30% of the point & figure charts of stocks are bullish. That's the time you want to go to your micro charts and look for monthly charts that are flashing bullish signals or are near to crossing bearish trendlines.
Take another example. Suppose, you hear about a gold stock. You pull up your Trading the Triangles monthly and weekly charts and it looks bullish. Is it a fluke? What does the industry look like? So you go to the macro point & figure chart of the Gold Producers to see if the industry is bullish or about to turn bullish.
Here's a [D][F1!3!!!4!20]&pnf=y]point and figure chart of GLD, the Gold ETF that clearly shows the break in the market:
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