Successful Stock Signals for Traders and Portfolio Managers: Integrating Technical Analysis with Fundamentals to Improve Performance, + Website

CHAPTER 19

Winning in the Stock Market Using Technical Analysis, S&P 500 Index, SPY, and Reading the Market, with SPY Exhibits

Whether you are a professional portfolio manager or professional trader, you can improve your performance by sharpening your technical analysis skills. The professional trader is constantly trying to move ahead of the widely known and used technical signals. The portfolio manager has no such need. He and any investor can use existing technical signals to improve performance.

In this chapter, we summarize how the trader and the investor can use technical analysis. These are the important points and examples to take from this book. We will use chart examples that will have long-term interest for the investor and short-term interest for the trader. You can pin these charts up on your computer wallpaper and look for the signals we describe in the coming years. They are recurring, just as the waves breaking on the beach. The trader rides the waves of demand or supply just ahead of the wave. The portfolio manager waits for the wave to crash on the beach with a resounding buy or sell signal. The trader and the portfolio manager use technical analysis in very different ways, but the end result is the same in achieving better performance.

Both traders and portfolio managers must be able to identify and use the technical analysis signals for the broad market such as the ­Standard & Poors (S&P) 500 Index. Here, we look at the market both from the long-term investor's ...