Why does Technical Analysis work? Because markets trend. No one can argue that. I don’t care who you are. And what do we do as technicians? We look for trends!
I was recently a guest on the Trends With Benefits show. It’s the perfect name for a podcast about the stock market, especially when you invite someone like myself, who is constantly looking to benefit from underlying trends in the market.
In this conversation, we talk about our Top/Down approach to the stock market. Ed asks me about why we were selling stocks and buying bonds weeks before the stock market crashed. So I tried to explain the things we saw, both from a breadth deterioration standpoint and all the intermarket relationships that had been pointing to buying bonds, raising cash and selling stocks coming into February.
In the second half of the show, I’m asked about a few more personal things like wine, my experiences traveling overseas and some of the biggest trends I’m seeing around the world.
I really enjoyed this conversation. Give it a listen. It’s a short one, but I think we hit on a bunch of good points! [Read more…]