Sunday, April 3, 2016

Ignore the noise - listen to the market:

Most of the technical analysts I know have their own style or skill sets they apply to the study of the capital markets. Technical analysis is an art form and differs from the fundamental analysis of profit and loss statements and balance sheets which is a mathematical study of past history      

We technicians tend to tune out the opinions of the fundamental side and conversely listen to what the markets are telling us. Basically the technical analyst will follow the money – because the smart money will lead the lagging financial statements.

The new 52-week high list will often deliver a profound message – like if the bears are predicting doom and gloom, how come the SPDR Technology ETF (XLK) closed last Friday at a new 52-week and multi year high?


Shawn Severin said...

Hi Bill,

Do you think the "financials must lead" mantra will continue? Tech is approaching new highs yet financials are going the other way. Will this result in an inevitable market decline or are the financials simply becoming less relevant (in the US)?

Shawn said...


I don't think the rule has changed

There can be no bull market without the participation from the financial sector

Currently the North American banks look good

Bill C