How can you even claim that technicals matter?

Iran happened during the night... and dropped the markets. That gives a potential buying opportunity for day traders. That's trading. Just sitting in longs on the market overnight isn't typically the best strategy if you're an active trader unless you're holding from below and have some runners on.
 
farmerjohn1324 said:
What's the #1 thing moving markets lately? Coronavirus.

Is there any way to have predicted that? Of course not.

And before that, it was Iran.
More...

Well - how do you know for certain that the markets would not have been down regardless of the Coronavirus?

Is it possible that the markets were due for a sell-off anyway and that it was only exaggerated by this particular news item? I for one predicted last week down 1-2 % and it was a pure technical call. Nothing to do with RSI or moving averages of course.

Further - is there necessarily a contradiction between technical movements and what causes those movement?

The bottom line is that players move the markets. And these typically don't sell on a hunch or a whim. Even during a sell-off, markets behave technically. As can be seen on where the bottom for today was put in.

The Making of the World’s Greatest Investor

Mr. Simons both anticipated and inspired a revolution. Today, investors have embraced his mathematical, computer-oriented approach. Quantitative investors are the market’s largest players, controlling 31% of stock trading, according to the Tabb Group, a research firm. Just 15% of stock trading is done by “fundamental” stock traders, according to JPMorgan Chase & Co., as many forsake once-dependable tactics, such as grilling corporate managers, scrutinizing balance sheets and predicting global economic shifts.
More...
 
farmerjohn1324 said:
What's the #1 thing moving markets lately? Coronavirus.

Is there any way to have predicted that? Of course not.

And before that, it was Iran.
More...
Technical analysis is just a ROADMAP. It's just a map that will guide you to your DESTINATION. It's nothing more that that. How you decide to get to your destination is completely up to you. There are many ways to reach your destination. You could take a shorter but dangerous route over the snowy mountain, or you could take a longer but safer route around a flat stretch of dry land. The choice is completely up to you.

So quit bitching so much about TA. It's not the TA, but what you do with it that matters!

Thanks for listening (reading).
 
farmerjohn1324 said:
What is your point? The s&p is slightly higher since the first reported case, which was 12/31.

I've already said that major indices going higher over time is about the only thing you can predict.
More...
Well, virus caused too much panic, AMZN crushed earnings freeing the bulls. The market is looking to take profit = rough ride.
 
formikatrading said:
Everyone trades their beliefs about the market. If you don't believe that technicals matter, you will find evidence to support that. Not worth wasting the energy arguing over stuff like this. I would rather make money than prove that I'm right.
More...

Actually, I back tested. Remember?
 
farmerjohn1324 said:
Read about a combination of indicators. Tested the EUR/USD. It works less than 50% of the time.
More...

LOL! So, you read of a few out of the box indicators, tested them and you're not yet rich? What on earth were you expecting?

You're the equivalent of a guy casually reading about brain surgery over the weekend and getting disillusioned when your patients starts dying the next Monday.
 
You must log in or register to reply here.
Back
Top