highlighting promising signs of a renewed upturn for global markets.
This analysis is clearly technical in nature – it infers future market action from stock price action rather than fundamentals like earnings or interest rates.I spent a long time equating the usefulness and accuracy of technical analysis to astrology but eventually changed my tune. I now consider technicals part of the research process – usually the final piece after investigation of stock fundamentals and prospective growth rate.
Early in my career in the finance industry, I was told repeatedly that ‘the market’s never wrong’. This turned out not to be 100 per cent true in the end, but it did provide a useful reminder that when the market is moving in the opposite direction you think it should, it’s almost certainly you that’s wrong, not the market.