Chartists in the BK land,
The following is from a recent interview given by the famed Lazlo Birinyi, pioneer of "money flow approach" of trading or investing:
"The Case Against Technicians
Q: You're distrustful of technical analysis, and typically investors who use money-flow analysis tend to look at major technical trends to add perspective to their decisions. It oftentimes goes hand-in-hand.
A: If you track a technician over the course of a year or two, you'll find their record is not very good. Contrary to what they say, technical analysis is especially not good at calling market turns. At the end of 1994, when this market rally began, very few people were positive going into 1995. When the market started going up, everybody jumped on the bandwagon. So technicians don't have a good record of picking turns. They certainly didn't call that one. Almost everyone, including fundamentalists, missed it. Secondly, technicians don't have a very good record in picking stocks. And if you clip or save some of these news stories where some technician recommends 10 stocks, and you go back a year later or six months later, invariably you'll find that they didn't do very well.
investor.msn.com
Interesting.
Ibexx |
