Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Art of Investing -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (5277)	8/25/2022 9:27:02 PM
From: Sun Tzu	Respond to of 10695

Done right, there is little difference between TA, Macro, and FA. The only difference is how often you get your data points and how will you filter out the noise. Piper Sandler's chief investment strategist, who is extremely macro/FA oriented, showed this a few days ago by plotting leading economic indicators and % of stocks above 200 DMA. The two curves were nearly identical. And it is rare to find a successful strategist that is purely FA or purely TA. You never analyze in vacuum. And for me, everything connects with everything. I try to build the whole picture by cross validating various components to see if they confirm each other. Most of the times they do. Opportunities happen when they don't. Right now bonds and commodities say we're going down, but the equities are fighting it. The amount of bearishness in equities is really amazing. So I'd say that the immediate risk/rewards favor going into tomorrow long and reversing sharply if the market tanks. I think this is what happened yesterday. People did this same type of analysis and decided to buy. And this is the 3rd type of trading. It is neither TA nor FA or macro. None of these will materially change between 10AM and 11AM tomorrow. Nonetheless some people will make and others will lose a fortune during that hour.