Friday, September 7, 2007

Harley Davidson, Brunswick, and Cemex Charts

I thought I would have another look at the adult toy stocks Harley Davidson and Brunswick. Harley is self explanatory and for the uninitiated Brunswick makes the Sea Ray. The charts tell you all you need to know about the consumer. You can ignore it or you can listen and speculate accordingly, the choice is yours.

Harley on the weekly (above) has broke a major (8 year) trend line. Again the facts are the facts. Do you listen to the shills and charlatans promoting their own self interests or do you listen and hear the charts. They don't lie.

Brunswick on the daily(above) does not look good.

I had a look at Cemex the global cement maker. Trend lines breaking, moving averages heading down with a negative cross(50 across the 200), again nothing but a bad looking chart. Sorry I don't make the charts I just read em'
I know this is not good news, I wish I had some but our job is not to be bull or bear but to be right. I do not wish a recession or worse a depression but there are some many contradictions in this economy and the underpinnings so suspect that stating the facts as they are in front of our face does not make us bad people. Pompom television(aka CNBC) treats people with negative or bearish news, view or opinion as wackos or certifiable nut jobs. I wonder how they will be treated when the show is on the other foot and these current 'wack jobs' are enthusiastically bullish when all others are negative.
Dennis Gartman was on CNBC the other evening, he of 35 years trading the markets, had a great point for the listeners. When discussing the financials of which he is bearish, he suggested taping some charts of them up to the wall and stepping back and looking to see the direction from a distance, they all look the same. He has mentioned numerous times in his letter of asking young children what direction the line of the chart goes. Quite simple, don't you think. I know the intellectuals formerly of Long Term Capital, Sowood, Basis Capital et al would disagree but I like it, simple yet elegant ! Good trading to you all.

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