I am not a big reader of dry, technical analysis. In fact, I have limited use for technical analysis in general. Sometimes, though, reviewing 10-minute charts and other such fluff is helpful in my analysis of what is going on out there in the world. Now this is just me. Other folks love the technical tools, and they are very good at using them, so when I come across those folks, I read their take to see how it matches up with my own. One such fellow is a writer on this site. His name and the title of the article that spurred today’s thoughts are:
Numb is not Dumb
by johnhcfl on Jun 2, 2010
Check this guy out. I like his straightforward and humble style, and his analysis is quite helpful as well. Here is an excerpt from today’s article.
Reviewing the day’s activity and searching for clues about what may happen going forward, I am struck by my own lack of insight. After thinking about that for a while, I have come to the conclusion that maybe there are none to be had right now…
You see, in my book, he gets it. The trading world is topsy-turvy these days. Good economic news morphs into okay economic news, and in some cases, even bad economic news, depending on the agenda of who is doing the analysis. Fear, and capitalizing on fear, drive the markets, which leads to increased volatility. And as this writer points out, there are issues that should concern us all.
… the political chaos that is engulfing the world (add the resignation of Japanese Prime Minister Hatoyama yesterday to the list after about 1 year in office), the raging debate of the deflation/inflation camps, the demographics of baby boomers racing toward retirements with [reduced]home values and 401ks, IRAs which they relied on for retirement turned upside down, the Gulf oil disaster all drain one’s mental and emotional energy as one looks for opportunity.
Note, in his list, he does not even specifically mention Europe or China, nor does he mention the tension between the Koreas, the Iran nuclear issue, and the Israel/Gaza problem. He does not have to mention them, as the term “political chaos” captures it all. The point is that all these important issues are real, and that reality reflects in the technical charts, and the charts reflect our collective “tiring” of having to hear about and look at these problems every day. Like him, the market is tired. I can relate. I am tired as well.
In any case, I find him refreshing, so, again, check him out and if you get what I get, which is that he gets it (that esoteric thing), you just might keep an eye on his helpful, chart analysis.
Trade in the day; invest in your life …
