Quotes from John J. Murphy

It should be stressed here again, however, that basic trend analysis is still the overriding consideration.

As with all technical indicators, signals on weekly charts are always more important than those on daily charts. The best way to combine them is to use weekly signals to determine market direction and the daily signals to fine-tune entry and exit points.

the yen upturn coincided exactly with the start of a topping process in global stocks. By first quarter 2008, the yen had risen to the highest level in three years against the U.S. dollar as global stocks tumbled.

One thing that stock investing has in common with real estate is that location is very important. In this case, however, we're referring to where in the stock market your money is located. Being in the right sectors and industry groups can enhance your overall performance. Being in the wrong ones can hurt it.

fear, however, was the rotation out of economically sensitive consumer discretionary stocks (which include retailers and homebuilders) and into economically resistant stocks like consumer staples.

consumer staples include food, beverages, and household products that consumers need to buy in good times and bad.

consumer discretionary stocks include products that consumers might want, but don't necessarily need (like a new car or house). They can defer those purchases until things start to get better. They can't defer food purchases.

leadership by consumer staples is usually associated with a market top. That would also have suggested rotating out of stocks and into bonds or gold.

Consumer staples usually underperform the S&P 500 during bull markets and outperform it during bear markets.