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?
Posts
2 comments:
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
Hello
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
Post a Comment