jason meshnick

Technical Analysis of ACM Income Fund, CEFs in General, Doesn't Make Sense

Thanks Eric. I will definitely start researching them.

Jason

Technical Analysis of ACM Income Fund, CEFs in General, Doesn't Make Sense

Agreed. The screen that turned up ACG sounds like it was poorly run.

I've been away from the CEF world for a while now and look forward to reading more of your work. CEF's have some characteristics that make for interesting analysis.

Thanks for putting this blog together,

Jason

Technical Analysis of ACM Income Fund, CEFs in General, Doesn't Make Sense

While I agree with your analysis that this stock has limited upside, I vehemently disagree that technical analysis of CEF's doesn't work. TA was a key input for me during the 5 years that I traded closed end bond fund's for 2 major broker/dealers. But you need to look beyond the fund itself. The key is analysis of the markets that impact the fund as well as the premium/discount. Once that analysis is done, the trader can look at the fund using trend analysis, support/resistance and tape reading. Of course, 1/8 of a point was all I needed to have a nice day. Closed end bond funds are not volatile and make poor trading vehicles for small traders.

My point is, that anything with a price can be analyzed using TA. But it can't be used in a vacuum. And, if you are trading mechanically, you should also understand the fundamental reasons why a stock may or may not fulfill technical price targets. That appears to be the problem in this example.

Jason