How to make money online from trading sector ETFS uptrends and downtrends


Hey there Adam Collingwood again and some
of you have asked me what is a perfect looking trend an upward trend . Well you are looking
at is at this very moment . This is a chart of pharmaceuticals ETFS . What we are looking
at is a weekly chart and as you can see from the beginning of 2013 that the price has just
kept moving up and up and up If you are wanting to trade a particular sector this is what
it looks like when you find a very very good trending sector. The pharmaceuticals industry
if you look at any shares in that industry have done fantastically well . Now I am just
going to flick to the Daily chart and as you can see the picture does look slightly different
because there has been a pull back here . But look at what it does , look familiar? what
does it do in April ? earlier this year it comes back to our beautiful red line here
and continues its momentum, up making a higher high in March which was a higher high than
what was in January . Which was a higher high than what was in December , here another one
, pull back and look at that its come up beautifully to July and look at that it comes back this
is on the daily chart . Comes back August 1st hits our lovely red line and it takes
off again . Now what I am not recommending is you get in now because if you didn’t get
in at this point then I’m afraid to see that you have missed the boat on this particular
strategy . We don’t trade the extension we need to wait for a pull back to happen before
you would even consider going in.But what this just shows you lets have a look again
on the weekly chart how certain sectors can trend beautifully ,so this isn’t trading any
shares this is the actual ETF of the pharmaceuticals index , okay so you can see the lovely lovely
up trend . What I am going to do now is show you something that has been in a down trend
so if you have been trading the next one I am going to show to you , you could have been
making money going the other way. Okay so the company we are going to look at is Geo
Space Technologies . So lets have a quick look at Geo Space . What we can see is they
manufacture and distribute data products , I am not going to pronounce that for you sezmic
data products , whatever sezmic means , now the forecast for the end of this month . We
are in September at the moment so if you are watching this live its the 30th September
forecast . Now answers on a postcard . If you look at this the forecast comes in very
similar to last year but answers on postcard as to why this particular company Geo Space
has been in free fall. And look at that ,look at what’s happened this is on a weekly chart
of Geo Space technology and the beginning of September 17th . What you can see is from
here February its just been in free-fall in fact its fallen overall by , lets go back
and have a look 60.93% from its high . So from its high point up here its fallen by
60.93% . So something has been going on with Geo Space . Now the objective is to find out
what’s been happening with them just so that if you are shorting them ,that you know why
you are shorting them .This is where people can go wrong they can just look at a chart
and it looks absolutely fantastic its a perfect perfect chart demonstrating shorting shares
, look at that just making lower lows all the way down . So from there we draw a trend
line all the way down and that’s just a perfect chart showing a share just in free-fall . From
looking at the number before . Why is that happening when the profits look like they
are going to do the same as they did last year ? Are the company really that bad? If
you notice from the previous screen the PE ratio was pretty low in the company , I can
show you this again okay look at that 7.67 , earning per share , the size of the company
and we can see here the borrowings okay no borrowings so no interest rate to cover . So
what’s actually happened? Whats going on with this particular company that’s made it go
into free-fall and of course would you trade this company now ? Its coming up to our magic
blue line here so it hit it in June 2014 this year and its just come off all the way down
and that just a big big fall . So its moved away quite considerably from the blue line
so its got to pull back to it ,back to the mean as all share do at some point whether
they are going up or down . But is it going to continue to keep going back down again
from seeing those numbers before bearing in mind the forecast for the end of this month
you’ve seen what that is , perhaps people know that its going to be a lot less than
that . So this is where the homework needs to come in just to very quickly establish
what’s going on with the company and how to quickly find that information because of course
if you do this right you can make a lot of money . So that was two charts which people
wanted me to show them of a share or a ETF in an up trend and how they can make money
from just trading that nicely upwards . You wouldn’t have had too much bother with the
Pharmaceuticals trade there but as you can see again here once it started to build momentum
downwards you could have done very nicely shorting Geo Space . So just one of 1000 s
of different companies that I just wanted to show you that so again just look at the
weekly chart there . Okay? So if you want to tell me why you think this company is in
free-fall then please send me an email to

Leave a Reply

Your email address will not be published. Required fields are marked *