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Politics : Formerly About Applied Materials
AMAT 231.99+3.6%2:18 PM EST

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To: Robert O who wrote (25792)10/28/1998 7:30:00 AM
From: Gary Burton  Read Replies (2) of 70976
 
Robert--No offense taken at all. TA types really couldn't care less what FA types think of TA. And I suppose vice versa. The reason I swung over to TA was mainly because i spent many years with the mistaken impression that the current fundamentals determine a stock's near term trading pattern as in if they're good the stock must go up etc.The trouble with that approach of course is that in a liquid highly researched stock, one is dealing with in effect perfect information and the buyers and the sellers know exactly the same thing--ie the price already reflects the information so why bother with FA at all. Instead, focus on people's emotions to the info. TA is really a measure of the crowd's collective emotion to the already well documented information. And in my view a better way to go. To each his or her own. TA works for me even though many years ago I started my first job out of nusiness school as a brokerage firm analyst.Of course at that time I too thought TA was voodoo.
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