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Matthew Fox, CMT

Matthew Fox, CMT

Matthew Fox, CMT, MBA is the founder and principal advisor at Ithaca Wealth Management, an independent registered investment adviser that helps its clients compound their wealth through the construction and management of individual stock portfolios. Matt first discovered technical analysis in 2013 after taking an introductory course on the subject at school. From there, Matt obtained his Chartered Market Technician designation in 2017 while working as an analyst, trader, and investment committee member at Tompkins Financial Advisors in Ithaca, NY. Prior to working in finance, Matt spent five years working as a cook in several fine dining restaurants in NYC and Ithaca. Matt graduated from Ithaca College in 2013 with a Bachelor’s Degree in Business Administration, and again in 2014 with a MBA in Finance.

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            [post_content] => The market is a living, breathing organism that goes through many different moods and seasons within a given cycle. Different markets have different temperaments (as do all of us). And the analyst who takes time to understand all the moods of the market, tends to benefit from it. With the beginning of November, we have now entered one of the most opportune times, seasonally, to be invested in the market.

If “Sell in May and Go Away” is a saying followed by many, then “Always Remember to Invest in November” is something to plan for as well. But regardless of these phrases, what will always work in favour of us in the market is a good Risk Management strategy. If we have that in place, then half the battle is won!

Across the globe we are seeing the resumption of the bull trends which were consolidations until now. For instance, the Dow Twins are finally confirming the trend; after 9 months of nothing, the Small Cap index (IWM) has finally registered a breakout on the weekly chart, while the microcaps (IWC) seem to be picking up pace. We also have CAC 40 and DAX trade at record highs! Bank Nifty is adding to the strength as well. Definitely the kind of setup one could expect during a historically profitable seasonal time.

As we drive through breakout city, it becomes important to make decisions on the basis of our parameters, risk profile, investment goals and our investment personality. With so much information at the tip of our fingers, it's easy to lose sight of our plan and make impulse decisions that we would otherwise frown upon later.

While technicians are taught to take every chart as it comes, there are times when we tend to force our view on the price. There are also times when we bargain with the market: risk management levels are sometimes altered over and over again, because failure is hard to acknowledge. A bad trade can quickly morph into an ugly trade, if not checked in time.

On the flip side, a small profit could turn into a major portfolio winner with the help of the appropriate technical tools. The goal is to cut the losses and let the profits run. Easier said than done, of course, but only practice can help us get better. When all is said and done, Technical Analysis, when followed correctly, will always keep you afloat - no matter the storm.

The market can be a battle, a city, a storm, anything. But as long as we follow our plan, we should be able to get to the other side with a good amount of profit and lessons to serve us a lifetime!

Here’s to a profitable beginning to a profitable season.

Rashmi Bhatnagar

Editor
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