Does anyone on this thread use t/a (technical analysis) or as per the previous posts, most seem to use primarily fundamentals in their investing.
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Does anyone on this thread use t/a (technical analysis) or as per the previous posts, most seem to use primarily fundamentals in their investing.
Been 40 years since I was in school but it is my understanding that none (or very few) colleges offer t/a in their curriculum.
Thats because it is bull shit
Technical analysis is silly imo
My definition of a correction is probably different than what people think of when they think 'correction.' I take into account things like MACD and Relative Strength Index to determine corrections, their severity and how oversold or overbought an individual equity or certain index may be at any given time. Those are only a few and neither are perfect, but they're worth understanding.
I have no idea what will trigger the correction. It could be about 100 different things. I do know, though, that option writers are not stupid and options (across the board) are implying that there is significant risk over the next 120 days. Enough risk that you could see equities sell off in the 20-25% range, if not more. And a recession to me is a true recession; two consecutive quarters of of real GDP decline. So in six months do I think we'll see a 30-40% correction? No. Will we if we fall into another recession? Sure, maybe. But I don't think the US is at risk of slipping back into a recession
I don't particularly care for utilities right now and haven't for about six months. AGNC is a great one, but it will turn south if we have a spike in interest rates or if there's some rumblings with the restructuring of Fannie and Freddie (both of which are highly unlikely for the foreseeable future).
Good luck. Let's resurface once some of these September Puts of mine expire...
Been investing since early 70's...retired from day job @ 53, ten years ago to trade full time...Use t/a & fundamentals. Trade 7 figure portfolio, t/a been very good to me!
it just seems that any advantage that may have been gained from technical analysis in the past would have dried up with computer trading algorithms. i believe there are some holes in the efficient market hypothesis, but i don't see how a guy in his living room is going to find patterns undetected by brainiac quants pounding out code 18 hours a day.
The reason technical analysis appears to work is that a lot of people are looking at the same indicators and have the same beliefs about those indicators. When those indicators show a sign that their adherents interpret as buy, masses who follow said indicators buy putting upward pressure on the stock. Same works in reverse too. But there are no fairies at the bottom of the garden. I'm glad people believe in T/A though, because in the long run that's how real investors are able to profit. As said by Ben Graham, in the short run the market is a voting machine, but in the long run it's a weighing machine.
Been fortunate to "trade with the whales", PM me & I will discuss further...as this mkt. is over extended now...looking for up to 5% pullback in SPX before it will be time to reload again sometime mid to late Feb...
http://leeonlife.com/ is a great financial resource.
Feel free to share here.
http://leeonlife.com/ is a great financial resource.
What an idiot, this guy clearly doesn't know what he's talking about.