Welcome to EV's point and figures. This blog is dedicated to the use of point and figure charts in technical analysis.
Although P&F first appeared in charts in the 1930's, it is an often overlooked techique for analysing stocks and charts. A poor relation compared to line and bar charts and their range of momentum indicators. Yet few charts provide a clearer picture of the daily battle between bulls and bears for market control.
Like most methods, it should not be used in isolation. It should form part of an analysts 'tool box' and be used with other techniques to help form an overall view.
The charts that appear on this blog and any accompanying comments are purely for information purposes only - my own personal take on where the prices may be heading. They do not constitute investment advice.
Friday, October 22, 2010
S&P/TSX Mining Index - digging its way......higher!
Its interesting to compare this bigger picture with that of the Wilshire and Dow as I did yesterday. Some might argue that 'its all gold' and the of the 107 companies in this index 36 are indeed gold miners but their weighting is small - 17.7%. Diversified metals and mining is the largest weight -39 companies, 59.7% of the index.
Interesting to note that this index did not have an April 2010 high - it didn't have a March 09 low either, having reached its low in the back end of 08. It's recovery high came in Jan, three months before the mainstream equity Indices. It also looked like it was going to roll over perfectly until very recently but has now taken out the Jan high and (for now at least) appears to be well on its way to a rendezvous with its previous peak in May 2008.