What is the Best Corn Stalk, I Mean Stock

• Posted by Greg Harmon
• on March 4th, 2011

One of the key values of technical analysis is the ability to look at  the the price action of different securities and make a determination as to which has the better potential right now. Really any number of securities can be used. Some would say this is also its shortcoming. A pure technical analyst does not need to know what sector the company is in or what the company does for that matter. In fact they do not care. All that matters is the price action. So when I had an exchange with Charles Otter (@baronkurtz on StockTwits and twitter) about what was my favorite way to play the rise in corn without using the commodities I had a momentary pause.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Other than  Corn Futures I drew an initial blank on how to answer the question. For this example, it would be a no brainer to look at all stocks that have a dependency on corn and compare their charts. But how to find them. There is no corn sector or industry group to search on FinViz.com. Sure I could plug the word corn into Yahoo Finance or Stockcharts.com and see what happens. Or I could go to the extreme and do some real research as to who buys an sells corn, as a feed

or for ethanol production, and then review them. But wait a minute, that is really getting beyond the objective of technical analysis. To the technical analyst price is the only thing that matters. As pro trader Brian Shannon (@alphatrends on StockTwits and twitter) says, “Only price pays”.

In order for me to answer the generic question from Charles as a pure technical analyst I either need a list of names to review or he needs to be willing to be broader in his scope and play the best charts out there regardless of sector. of course this hints at there needing to be a mix between technical analysis and fundamental analysis. But that is a subject for another day.  Time for some corn chowder for lunch.

As always you can see details of individual charts and more on my StockTwits feed and on chartly.)

By the way I do have a suggestion in here:  ETF’s in the Bathroom

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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