The opening chapter sets the theme for the rest of the book as Eoin identifies his ?four pillars of macro behavioural technical analysis? (for a Bull market):
? Theme/Fundamental value ? A sound fundamental story must exist
? Liquidity ? There has to be money available
? Governance ? Favourable government policies
? Price Action ? The ultimate reality check
Chapters 2 ? 6 cover Chart reading (Eoin prefers this term to ?Technical analysis?), crowds and the psychological perception stages of Bull and Bear markets. Chapter 6 in particular is an excellent read in its description of market cycle (stages); Disbelief/Dismissal, Acceptance, Euphoria, The Turn, Acceptance (again) and finally, Depression.
The subject matter then becomes more technical as key matters relating to Chart reading are discussed, Support & Resistance, Breakouts, Consistency characteristics and Moving Averages.
Various Stop losses are discussed and what?s interesting is how/when/why the Stop loss can be tailored as a trade moves through its various market cycle stages. Many struggling with Stop management will find much of interest in this chapter. The Trend ending sections that follow provide further assistance with Stop management as one prepares for, what should be, the final stage when in a Long position.
The fundamental section, if that?s what I can call it, then takes precedent. Eoin identifies covers Monetary policy, Governance and Regulations and identifies how these key areas affect and have affected different markets through various major market cycles.
The remaining quarter of the book is where the investment focus really comes into play and the technical and fundamentals are combined to examine ?autonomies?. Eoin defines an autonomy as a company which:
? Is multi-national and highly exposed to the growth of the global consumer
? Has a high degree of commonality in it?s share performance
? Has a long record of maintaining and increasing it?s dividend
Think, McDonalds, Diageo, Nestle, Colgate Palmolive, Nike, Toyota, Rolls Royce, RDSB, etc.
?Supplying the goods and services facilitating an improving standard of living for hundreds of millions, if not billions, of people. They are the financial representation of the greatest urbanisation in history, technology?s golden age and the beneficiaries of the boom in unconventional oil and gas production?.
Many of these companies (Eoin covers at least 100 of them in detail) ?have already broken upwards to new all-time highs, represent leadership and establishing secular bull markets?.
If you, like I, believe in Eoin?s outlook then this book is an absolute must for you. If you do not share Eoin?s view and you are serious about investing then this book is also an absolute must for you. Of course this book is much more appropriate to investing than trading. However, even those who have just the slightest interest in trading will find the Price action (technical) section, about half the book?s content, more useful than most other books supposedly dedicated to the subject.
