• Skip to primary navigation
  • Skip to main content
Mullooly Asset Management, Inc

Mullooly Asset Management

Fiduciary Fee-Only Financial Planner | Investment Advisor in Wall, NJ

  • Services
    • Wealth Management
    • Financial Planning
    • Retirement Planning
    • Investment
    • Estate Planning
  • Our Fees
  • About
  • 732-223-9000
  • Schedule A Meeting

Services

  • Wealth Management
  • Financial Planning
  • Retirement Planning
  • Investment
  • Estate Planning

Quick Links

  • About
  • Our Fees
  • Videos
  • Podcasts
  • Blog

Support

  • Contact
  • Client Login
  • Pay Bill Online
  • Form CRS
  • Our Process
Follow us on Facebook
Follow us on Linkedin
Follow us on Twitter
Watch On Youtube

Let’s talk

Technical Analysis Helps Us Focus on What We Can Control

June 17, 2015 by Brendan Mullooly, CFP®

https://media.blubrry.com/invest/p/content.blubrry.com/invest/Technical_Analysis_Helps_Us_Focus_on_What_We_Can_Control_June_2015_Podcast.mp3

Subscribe: RSS

We all spend inordinate amounts of valuable time stressing over things we cannot control. This is especially true for investors. No matter how hard we try, we cannot control what the market does. The market will do what it wants to, when it wants to. Here at Mullooly Asset Management, we’ve found that technical analysis helps us focus on what we can control.

Security analysis generally gets broken down into two camps: fundamental and technical. Both have their merits and are important parts of any portfolio management strategy. Fundamental analysis looks at things like company management, product line, earnings quality, and price/earnings ratio. Technical analysis looks at price movement, market trends, and relative strength (or price momentum). We make use of both fundamental and technical analysis in our process at Mullooly Asset.

When it comes to technical analysis, we focus on point and figure charting. If you’ve never seen a point and figure chart, check out some of our posts and videos here on the site. These charts are comprised of columns of X’s and O’s. They allow us to track the supply-demand relationship of an investment. We can analyze stocks, sectors, asset classes, ETFs, mutual funds and more with these charts. The beauty of technical analysis is that it tunes out the distractions. The only thing reflected on a point and figure chart is price movement, and price is the only thing that matters when it comes to investment results. We’ve seen time and time again that great companies don’t always make great stocks. Point and figure charts objectively tell us what the market’s opinion of a stock is. You could invest in the best company in the world, but if their stock price continues to fall, that’s not an investment you want to be a part of. John Maynard Keynes put it well, saying, “Markets can remain irrational longer than you can remain solvent”.

How does technical analysis help us focus on what we can control?

First, let’s think about what we can control. We can control: the positions we hold in our portfolios, the amount we hold those positions in, our savings rate, and what type of accounts we invest in. We cannot control: politics, daily news, reactions to daily news,  or stock market movements.

An excellent example of something we cannot possibly control is the current situation with Greece. Nobody knows how it will all play out; not me, not you, and not that guy on the TV who sounds like he knows what he’s talking about. We can all have opinions, but our opinions may be right or wrong. Whether we’re talking about Greece, interest rates, or whatever the market drama of the day is, the question often becomes: how will (insert headline of the day) affect my portfolio?

The proper answer is that we don’t know, but guess what? If market news breaks, and it affects our investments, we are going to see that reflected on our point and figure charts. We know precisely what investments make up our portfolios. We also have a clear, rules-based methodology that allows us to make unemotional investment decisions for our clients. When something no longer meets our investment criteria, we say goodbye. That is the game plan.

This is how technical analysis helps us tune out things we cannot control, so that we have more time to focus on what we can control.

Never miss a post...and we deliver!

newsletter mailman

Get our updates delivered right to your inbox. Sign up today!

Success! Now go and check your email to confirm your subscription.

There was an error submitting your subscription. Please try again.

We won't send you spam. Unsubscribe at any time. Powered by ConvertKit

Filed Under: Podcasts, Technical Analysis Tagged With: point and figure, portfolio management

About Brendan Mullooly, CFP®

Brendan Mullooly is a CERTIFIED FINANCIAL PLANNER™professional with Mullooly Asset Management, Inc.

1971 State Route 34, Suite 102
Wall Township, NJ 07719

  • 732-223-9000
732-223-9600
  • support@mullooly.net
  • Services
  • About
  • Our Fees
  • Contact
  • Form CRS
  • Videos
  • Podcasts
  • Blog
  • Client Login
  • Pay Bill Online
  • Our Process

The information on this website and blog do not involve the rendering of personalized investment advice. A professional advisor should be consulted before implementing any of the options presented. None of the content contained in this website should be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.

© 2022 Mullooly Asset Management Inc. All Rights Reserved.

  • Privacy
  • Disclosures and Legal Disclaimers
  • Privacy
  • Disclosures and Legal Disclaimers

© 2022 Mullooly Asset Management Inc. All Rights Reserved.