May

20

Beware of the parade of technical analysts soon to make their rounds on
television.  When this happens a panic low is usually near.

Sushi Kedia asks:

Do you say this because either Fundamental analysts are always in panic/euphoria extreme psychologies or the quantitatively evolved price students (they too are technicians, which the Chairman has acknowledged several years ago and he has indeed suggested that this passe thought process of beating Technical Analysts be avoided) are never experiencing panic or euphoria?

George Parkanyi adds:

And beware the contrarians who call panic lows based on what goes on on television…


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3 Comments so far

  1. Chopshop on May 21, 2010 12:30 am

    To be technical about it: 99% of the folks on “business news” networks are ‘chartists’ who couldn’t trade their way out of a wet paper bag. And 0.9% of the rest are retail buy side technicians who still speak with flagrant technical error to nonsense such as the 200DMA (which isn’t actually any type of methodology, just shorthand for the simplest iteration known by most).

    No one on ‘tv’ will speak to market internals, there won’t be a single mention of VOLD … but innumerable funny-mental anal-ysts, retail buy side chartists and legendary newsletter authors will certainly warn us about an amorphous 20% - 30% correction without citation of rhyme or reason let alone systematically quantifiable methodology.

    TA is predicated upon nuanced intuition, mkt forecasting / handicapping is a probabilistic endeavor and the vast majority of chartists really don’t have any clue … that said, am still looking for a fundamental analyst who can hit the side of a barn twice as per next week let alone next minute because at the end of the day price is price and marked to market while ‘value’ remains squarely in the eye of the beholder and always somewhere just over the horizon.

  2. Gary Rogan on May 21, 2010 1:08 am

    Beware of those who warn you to be beware.

  3. Indiana Bull on May 22, 2010 1:44 pm

    Financial Television and Technical Analysis are made for each other. Price alone can change and be acted upon in narrower and narrower pockets of time. Value takes soooo long to adjust to the pressures of the market place. So to go on and on and on 24X7 the Financial Television Channels will need Technical Analysts way more than any other kind of Analysts.

    The vagaries include dis-inclination of Financial TV Anchors from learning Technical Analysis as much as the shortage of time due to the commercial aspects of TV for elucidating any one point well save for enough time for monkey tricks of a certain anchor.

    So bad questions asked so many bad times by these untrained anchors will not allow to lead to good answers most of the time.

    I wish some proper grant be made by the Government or the Regulators for funding a Chair at some reputed University where research should be conducted if ever the TV Anchors will be able to learn using Technical Analysis correctly.

    Since they know nothing about it there question formats leave little room for an Analyst to offer any Analysis but just a view.

    So, it goes on.

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