Professor’s Comments Update 1/20/16

Posted by OMS  at January 20th, 2016

I bought some Kinder Morgan (KMI) earlier this morning at 11.27. Last April, KMI was trading at $44.

I didn’t buy KMI because of the indicators. There is NOTHING in any indicator I monitor that tells me that the stock is going up.

I bought it because at 11 bucks a share, the market is telling me that it doesn’t need pipelines or storage tanks. At eleven, it’s telling me that gas and oil are going to be so plentiful, that they’re going to store it on the ground. And when you need some gasoline, you will be able to go behind your house with a bucket and fill your car.

I don’t believe that!

Sometimes when the indicators are EXTREMELY oversold, you need to use logic and reason.

I don’t believe the market will test the August lows without some sort of rally.

h

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The Creation of Waves and Trends
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