Dancing with the Trend

WHY I Have Faith in Technical Analysis

by Greg Morris

There are many reasons I use technical analysis instead of some of the other analysis methods, but more importantly I have faith in it.  Read on! The other popular discipline is called fundamental analysis.  This method of investing is essentially based upon fundamental ratios or as they are often called on Wall Street, multiples.  Many followers of fundamental analysis also break it down further into a growth or value approach.  The more aggressive growth approach is the hunt for stocks that are currently not registering any multiples (no earnings, no sales, etc.) and Read More 

Dancing with the Trend

WHY Some Make Forecasts

by Greg Morris

Why are there entire businesses setup to make forecasts?  The answer is quite simple; forecasting exists because there is a giant market for it.  Investors/traders thirst for forecasts.  Here is the real question; why do investors want to hear/read forecasts? “Those who have knowledge don’t predict.  Those who predict don’t have knowledge.”  Lao Tzu So that there can be no confusion, I want to state my honest heartfelt opinion on forecasting:  I adamantly believe there is no one that knows what the market will do tomorrow, next week, next month Read More 

Dancing with the Trend

WHY Price is so Important

by Greg Morris

I often hear technical analysts performing their craft on economic data, derivative data such as the AD line, and a host of other data sets that do not trade.  Why would you do that?  The most basic premise of technical analysis is PRICE, the price that is determined in the auction market by traders and investors making decisions.  Price is an instantaneous view of supply and demand. Hopefully you know that when you buy a stock, someone had to sell it to you.  There is no stock sitting on a shelf somewhere, you have to buy it from a current holder of that Read More 

Dancing with the Trend

Odds and Ends

by Greg Morris

Webster defines Odds and Ends as different kinds of things that are usually small and unimportant.  I would prefer to define them as sort of important.  I’ll use this format for issues that I cannot justify an entire article on.  So expect Odds and Ends II at some point. Mutual Funds If you buy a mutual fund you are not buying a money manager, you are buying an objective manager.  Let me explain.  Many, if not most will choose a mutual fund based upon its performance over a period of time or the victim of exceptional marketing.  Too often I think the period Read More 

Dancing with the Trend

WHY Technical Analysis Works

by Greg Morris

From the dictionary: Why – a noun - a reason or explanation. I’m going to write a few articles on why technical analysis is valuable – I’m calling it the WHY series.  I spent 15 years in front of advisors at the large wire houses and insurance companies selling them on technical analysis.  These articles will reflect some of the concepts that seemed to work well when “selling” technical analysis.  I’m sure you have been asked by non-believers why you use technical analysis; this might give you some answers. Technical analysis keeps us from Read More