Minutes

AAII Orange County Chapter

Monthly Meeting, February 16^th, 2008

Oasis Senior Center

800 Marguerite

Corona del Mar, CA 92625

Reported by: Rex Chen

Title: Technical Analysis of Financial Markets

Speakers: Don Jarrett, Registered Advisor and College Instructor

Chapter President Bob Welge brought the meeting to order at 9:00 am. In the beginning of the meeting, Bob announce the AAII Orange County’s website and the resources available on the web, including meeting minutes from past events. Bob mentions about the upcoming roundtable and the new meeting location for the future. Bob then introduce today’s speaker, Don Jarret to discuss about today’s topic on Technical Analysis for the stock market.

In this talk, Don first discusses the historical basis for technical analysis. It dates back to the Dow theory and Elliott wave theory, which supports the concept that the financial markets behave in specific trends or patterns. Hence, by identifying the behaviors of these patterns, it can enhance the ability of a investor to make better decisions for the stock market. Don then went on to define and describe a variety of common terms used in technical analysis for financial charts. Among the terms include trend-lines, resistance, moving average, triangles, candlestick, RSI, and divergence.

More resources about technical analysis can be found in academic studies by professor Malmendier and Shanthikumar from UC Berkeley and Harvard University. A good website to conduct technical analysis suggested by Don is: www.stockcharts.com