To divine is Divine

One thing all investors do is to divine the future.  At Riverplace Capital we are primarily fundamentalists looking at business and economic factors to search for opportunity and recognize risk.  Another approach we also use to supplement our fundamental analysis is technical analysis.  This is the study of price action in the market itself along with other factors such as volume and moving averages.

This past week we had our monthly technical review with our consultants in Boston regarding the present technical picture.  What emerges are many indicators that show that the market is trending sideways with a tighter and tighter spread between highs and lows.  This usually results in a major breakout to either the upside or downside.  However, this sideways action can go on for quite some time.

Obviously we believe that the breakout, when it comes, will be to the upside.  We get this from our fundamental analysis, but only time will tell.  In the meantime, the market is not doing badly and we are finding new opportunities.  Marking off a little time after the terrific results last year is not a bad thing.  Stay steady my friends.