The Case for Ignoring Jennifer Lopez When Making Trades

the technicals are a reflection of the underlying fundamantals

There is good technical analysis and there is bad.

I suspect that a number of traders who adopt technical analysis as their "brand" (if you will) may think it is an easy, readily predictive form of trading without having done the prerequisite study and introspection. Yes - I said introspection. Technical analysis requires discipline to rules established by STUDY of the markets AND oneself; it is NOT a quick fix and NEVER EASY. I suspect that the results of the study may be nominally accurate: I also suspect that it may reflect that many of those who would like to call themselves technical traders are also early in their evolution towards an understanding of just how much work, multi-tasking-attention and discipline trading (of any nature) requires. Yes, you can do it from your kitchen in your underwear, but not if your underwear is wrapped around your brain.......

On the other side of the coin, of course, are the plethora of MBA-schooled fundamentalists who with all their study only infrequently outdo the markets, and headline their mediocrity with the failure of those who pursue (inadequately) technical analysis. Fundamental analysis has been around for HUNDREDS of years and produced not-so-many giants, given the number of adherents to it. Let's face it - if Lehman, Bear Stearns, Merrill Lynch, Citigroup, et. al. (and some politicians) had been technically oriented, maybe they would have known something was.......................................................well.........................................................................WRONG.........

No fundamentalist ever predicted MSFT, AAPL, CSCO or any other game-changing revolutionary before the facts of the enormity of their respective successes. Most of the value boys & girls still find excuses not to own APPL and no doubt will screamingly decry that "JOBS IS DEAD"......................to which I would respond:.......and so are Einstein, Alexander Graham Bell and Thomas Edison.........................................

His study was data from 2000 - 2006. Bwahaha. How convenient. Try using modern stats Arvid and Hersh, you tools. The central banks have taken over control of markets since then.

Wow what a stupid article.

There is no way to measure the performance of technical analysis because technical analysis is not just one thing. It is thousands of things. Most of these things are indeed garbage. Some are gold.

The belief that markets follow natural rules which may be discovered by math is science. This is no different than scientists who seek to understand any natural process with observable data. To call this nonsense is nonsense.

Proper technical analysis that provides a true model of the underlying market system is more theoretically justifiable than the hocus-pocus found in modern macroeconomic theory which clearly does not work.

Fundamental analysis is merely false models applied to lying data in hopes of discerning the truth. Technicals drive fundamentals. There is always a fundamental reason offered to explain what is pure math at work, but it is the underlying technicals which drive all market moves except for rare panic events.

Here is a worthy comment for this article:

"...m-m-m...Jenny Lopez...m-m-m..." :-)))

what is a jenny lopez pattern it must be a double top or a double bottom . its the kardashian patters that you must ignore fake tripple tops and fake tripple bottom it just doesnt have the same type of bounce

Well said.

Trouble is most technical analysis is just pure crap, we are working in the 21st century using indicators from the nineteen hundreds. Once you start using more advanced tools you certainly get better result, out brokers could help and supply these tools to us but they won't.

A map of stops and limit orders displayed on your charts, neural net cycle models etc. I don't think you see any hedge fund using RSI or MACD.

I think the SP tops out on Monday at about 1924.9 to 1925.3, you won't see that comming with any technical analysis.

That is unless it has already topped at Thursdays top, calculated using Ganns SQ9 method. Which is sure old school!!!!

is she in the blue man group now?

Really ???
Then why most hedge fund have poor performance ???

and i think, SP already topped today ...

And fundamentals are a reflection of the underlying what? Thanks in advance.

The market is not user friendly The Crow

People who gamble at race tracks sometimes have bizarre reasoning too. Sometimes it's superstition. Sometimes it's hem lines or Jennifer Lopez. But, that kind of gambling is just gambling.

Chart watching is a waste of time.

I believe entry and exit is just the 20% of the trading, 80% is management.
How you manage the trade when you are in profit or loss, and how you manage the overall account.

To answer that question I can tell you, most professional people bought in by hedge funds, be it programmers, physics professors or maths genius have no idea of market structure, hence they approach the problem with a logical methods using the tools they have aquired throught their studies. The market is unique in its set of rules, and unless you can figure out those rules you are lost.

The market must have rules otherwise it would be the only thing in the universe without some sort of guiding principles.

I hope you are looking at the market with the right tools, but be aware the person that constructed the tool to find tops and bottoms often was 50 pips out. so don't expect it to be to the pip.