The Forest or The Trees?

Have you ever heard the expression ” Cant see the Forest through the Trees” or “Cant see the Forest For the Trees” ?  Its about being so focused on 1 Tree ( Or 1 idea) that you cant see the big picture, the Forest . Its important for investors to see all things big and small , because it can affect the outcome along the way.

For example, we may see a nice set up in a stock. EBAY looks to be breaking out

EBAY just might be breaking  out & take off from here, but stepping back and looking at the bigger picture helps us to see if we should be buying / waiting / or what?

When I stepped back & looked at the QQQ on DEC 8 however –  I thought we were due for a pullback. Sure it was STRONG…it hadn’t broken the 10sma in over a month of straight up buying… but look at that MACD. Look at the RSI reading  (relative strength was weakening) . I mentioned in the premium reports  that this and the SPX showed signs of weakness, expect a pullback.

That doesnt mean its all doom & Gloom. Pullbacks can be healthy. We could just return to test the recent break out & be back off to the races!  Many expect an end of the year rally.   OR  We could Bounce and it could become a short opportunity.

QQQ currently

So you can see that the bigger picture will be helpful when making trading decisions later

Similarly – I recently pointed out here the Bottom in GOLD.  Most of you know that I was able to identify it On the day of NOV 7 with an overnight shake out. I posted a pre-Market report saying that I was buying  (And I got plenty of email saying other letter writers were SHORTING the break down , with $800 to $1000 gold targets). 

  Then we watched GOLD day after day / week after week selling off and being bought back.  I called them “TESTS” and “SHAKE OUTS”  and to try to build confidence  – I kept posting  these charts .

So those early NOV lows held , but what about now? The picture may look mixed to some. Gold has held up, but Miners arent surging higher, and that concerns some.

GDX DEC 11 –  Some fear that GDX is getting weak and ready for another crash mode, others think it could be waiting for Gold. What do you think?

At chartfreak.com in the premium section  (Under the strategies tab) I post almost daily what I see and how it could affect things going forward.  Recently I had been discussing the $USD and called for that to pullback after a false break higher, though most others felt it had to break out higher.   I used this chart wkly chart in November ( One of a few) to share 1 of my view.

  I have been sharing with subs how I view these somewhat tricky moves and what I expect going forward.   Things can change , however, and thats why I mentioned the BIG PICTURE in the opening paragraph.  I will post here from time to time , but to be fair , I have to save premium content for those that signed up for it.

So why is it important to see the entire Forest through the Trees?  Why is it important to not just focus on one small tree? As you can see from the picture that I posted  as our  theme picture …it may be the “Unseen” little things that can affect your future moves. Look again at the same picture now posted below.

Thank You for reading along and Stay Frosty My Friends  : )