Risk Disclaimer

The positions in this portfolio are incredibly risky and extremely volatile.

No one at Get Irked is a professional financial adviser (or a doctor), so consult with your own financial adviser to see if any of these positions fit your risk profile (and stomach).

Danimer Scientific (DNMR)

Danimer Scientific, the medical biodegradable plastic manufacturer, continues to take two steps forward and one step back. DNMR missed on earnings and revenue when it reported and didn’t have much positive to say in the way of forward guidance, either. As a result, Danimer got wrapped up in an -18.63% drop this week, easily earning itself the spot of the Biggest Loser.

Technical Analysis cannot predict the future.

Technical Analysis (TA) is the technique of using charts, trendlines, moving averages, and a myriad of indicators to attempt to provide some sort of logic to the price action in a give investment. In fact, some technicians will use TA on anything whose movement can be charted over time, not just investment assets.

However, there is a common misconception both outside but even within the TA community that technicians are trying to predict the future price movement of an asset using past performance.

Predicting the future is impossible. Or, as Yogi Berra once famously said:

“Predictions are incredibly difficult, especially when they’re about the future.”

Technicians must absolutely dissuade themselves of the thought that their analysis can help predict future price action. No, what TA is actually intended to do is identify key pressure points in the future where an asset may diverge from its current course.

In other words, Technical Analysis is not about predicting the future, it’s about predicting potential forks in the road where an asset may diverge one direction or another.

By knowing when a potential catalyst might occur, an investor or trader can create plans of attack for both outcomes. For example, a trader might decide to cut losses on a trade that suddenly  goes against them or an investor might decide to take profits if an investment suddenly pops.

Technical Analysis can be an incredibly powerful tool, to be sure, however it should not be viewed as a one-stop solution for investing or trading. Instead it is a single tool in a toolbox which also includes fundamental analysis, sentiment, and macroeconomic and geopolitical news events.