Category Archives: Technical Analysis

Gold Outperforms Technology Year-To-Date

The holiday-shortened week marked a significant change in asset performance with gold outperforming technology on a year-to-date basis. This impacts diversified portfolios.

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Claims Of Concerted Bond-Dollar Decline Are Unfounded

Many articles in last few days attempt to link a decline in US Dollar to a correction in bonds. Technical analysis is used to justify bias. These markets are known for often violating technical analysis since their direction depends on political … Continue reading

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Why So Many Overestimate Their Technical Analysis Skills

Many traders overestimate their technical analysis skills and this mainly involves those using old and outdated methods. However, in some cases technical analysis is used as a cover to promote wishful thinking.

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Strong rally in biotech

Yesterday IBB surged 2.9%, it is now up 12.4% for the year and a top performing ETFs. There is strong resistance overhead and price action is still mean-reverting.

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Is the Bulk of Technical Analysis “Thinking in Words”?

Until now I thought that the main problem of technical analysis is bias of all kinds. A tweet from N. N. Taleb yesterday got me thinking. Maybe there is a more serious problem than bias: thinking in words.

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Ominous Correlation

The 60-day correlation between SPY and QQQ ETFs has plunged near pre-dotcom crash and below pre-2007 top levels. Caveat lector included.

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Eight Signs To Help You Identify Technical Analysis Trolls

Modern technology offers the opportunity to trolls to pose as technical analysts. How do you recognize a technical analysis troll? Eight signs provide clues.

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The Post-Hoc Chartist

Why do some chartists turn ad hominen when their practice is challenged? The plausible answer is that they are frustrated by continuous failures and are acting under the influence of backfire effect cognitive bias. In essence, there are people who … Continue reading

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