ASX Investor Hour with Jim Berg

Once a month, the ASX run lunch time investor hour seminars in each capital city in Australia, and occasionally, they are worth going to.  Today's was called "When you should reinvest and how you should do it" by Jim Berg, and it sounded interesting enough, so I went along.

Before hand though, I checked out his website, and this made me somewhat skeptical of the seminar.  Basically, I figured it was going to be a sales pitch, and sure enough, his book was on sale as I entered the foyer and for $30 a month I could subscribe to his newsletter.

Still, I took some notes, so here goes:


He started with a the tag line "The big picture. Trade with the trend", which was an instant "trading" warning flag to me.  His three rule for "upward trends" were: 

• Higher highs and higher lows. 
• Rising moving average. 
• A Close above moving average.

or something to that effect, which begged the question: Where are we now?  A few charts later, and the answer was: "Not in a rising trend".

A couple of things made me chuckle.  First was his reference to the "long term" - which was to use weekly charts instead of daily charts.  Next was his reference to "fundamental analysis" which is where you use newsletters, magazines, newspapers and other high quality publications to generate your shortlist of companies to then perform the technical analysis on...

The question of "When to trade" was based on:

• The stock, industry group, and indices being in a rising trend
• The Relative Strength Index, which compares average of rising price change to falling price change. 
• A volatility entry signal, ie, the closing price being greater than two times average trading range over the last ten days, than the daily low (get that?).

His list of companies that are currently in a rising trend are:

• SLR
• SIP
• RSG
• RRL
• MSB
• MAP
• DML
• BPT
• AZT
• TRY

And so we should watch these over next "several" weeks. I'll say four weeks, and try to remember to provide and update to see how these companies fare.


His throw away line towards the end of the seminar was that "Markets always make new tops - eventually" without any mention of inflation - gave me another chuckle.  Then he delivered his concluding remarks - don't forgot to buy his book and subscribe to his newsletter. 

I can't even be bothered being sarcastic.  Avoid.