NZSX50 - Good News!

[Toulouse - Luzern]

NZX today...

Three white Samuari

are

much better

than

three black crows ...

[Major von Tempsky]

A very perceptive and discerning comment Toulouse-Luzern. I don't know why Hoop keeps cluttering up our screens with that meaningless superstitious gibberish. Buffett has said he doesn't use it, has no use for it, so have the banks and any number of other analysts. No one has yet been put forward as having made a fortune from "technical" analysis. There should be a separate board for arcane religions. The only people to make a fortune out of "technical" are the sneaky purveyors of "technical" software, books, "tutorials" to the lower classes.

[allfromacell]

A very perceptive and discerning comment Toulouse-Luzern. I don't know why Hoop keeps cluttering up our screens with that meaningless superstitious gibberish. Buffett has said he doesn't use it, has no use for it, so have the banks and any number of other analysts. No one has yet been put forward as having made a fortune from "technical" analysis. There should be a separate board for arcane religions. The only people to make a fortune out of "technical" are the sneaky purveyors of "technical" software, books, "tutorials" to the lower classes.

I admit to having very little knowledge in finance/investing as I'm very new to this, (early twenties just started working) but from what I've seen so far I completely agree. It seems to be the typical case of humans looking for patterns in absolutely everything even when they don't exist, when they do work it just aids our bias. In saying this, I do find it fascinating, perhaps it works as a self-fulfilling prophecy? If anyone has any objective books or information on TA I would love to look further.

[BlackPeter]

I admit to having very little knowledge in finance/investing as I'm very new to this, (early twenties just started working) but from what I've seen so far I completely agree. It seems to be the typical case of humans looking for patterns in absolutely everything even when they don't exist, when they do work it just aids our bias. In saying this, I do find it fascinating, perhaps it works as a self-fulfilling prophecy? If anyone has any objective books or information on TA I would love to look further.

Actually - I enjoyed the Majors response, but I thought it was meant to be ironic?

I don't think anybody says that TA is the only useful tool in the box, but as long as share prices are driven by humans (or any other animal running in flocks) does it make sense to measure and consider the history and the current speed and direction of the flock to draw conclusions where they are likely to go ... Sure - it does not work always, and it is useful to take other factors into consideration as well, but it does work more often than not.

[Hoop]

NZX today...

Three white Samuari

are

much better

than

three black crows ...

Yes good short term bullish candlesticks..Although the NZX50 index hasn't fallen much the chart shows there has been huge technical damage....Things aren't looking great
5700 /5750 are areas to watch which could see any new rally peter out....

Dangerous time to buy in under the 5700/5750... (the rule:.. buy near supports not near resistances)

The wise are out and waiting to see what develops

Disc: still 99% "in" (my stocks haven't fired sell signals yet)

[skid]

I admit to having very little knowledge in finance/investing as I'm very new to this, (early twenties just started working) but from what I've seen so far I completely agree. It seems to be the typical case of humans looking for patterns in absolutely everything even when they don't exist, when they do work it just aids our bias. In saying this, I do find it fascinating, perhaps it works as a self-fulfilling prophecy? If anyone has any objective books or information on TA I would love to look further.

I believe KW has mentioned a few

[Xerof]

The generally acknowledged 'bible' is Technical Analysis of the Financial Markets, John J Murphy.

[sb9]

S&P/NZX 50 5,677 -0.86%

This is what is on NZX website (NZX.com) as I type this, must be something wrong there as it says NZX 50 down .86% while its only down about 20 point or so.

Any explanations or is it just that NZX can't do their math right?

[Hoop]

There are 2 bibles the other one is Encyclopedia of Chart Patterns 2nd Ed by Thomas N Bulkowski The book has 1035 pages ..He also has a website The Patternsite

[banter]

S&P/NZX 50 5,677 -0.86%

This is what is on NZX website (NZX.com) as I type this, must be something wrong there as it says NZX 50 down .86% while its only down about 20 point or so.

Any explanations or is it just that NZX can't do their math right?

The .86% fall is from today's open, not yesterday's close.
Yesterday's close would be better IMO.
For some reason (pre market trades?) it gapped up on open to 5725 this morning, then slid back rapidly.