Friday, February 26, 2016
Here's why you can unsubscribe from your favourite TA
In case you're wondering why your favourite TA has suddenly quit talking about a downward channel/bear market/$SPX 1950 resistance:
That's because $SPX took out 1951 and the SMA(50) yesterday.
Your TA, see, doesn't understand that this past few months of crybaby bullshit was just a cokehead hedge fund reaction to the usual winter slowdown in US GDP, with associated panty-piddle over Janet raising rates because she knows how to find data that predicts unemployment and inflation 6-12 months out.
And now that the Atlanta Fed's 1Q16 GDP prediction is back at 2.5% (to be updated later today), which is above the blue-chip consensus, all of a sudden the "global slowdown" talk is looking stupid and people are buying stocks back.
So you can quit reading TA blogs now.
I especially laugh at the one guy who's even compensated for his dismal past predictions by inventing a funny new sort of dome-line that doesn't exist in any chart book I've ever read. Yup, buddy, I'm sure the S&P 500 will halt at 2000 and the SMA(200) - for two days, like it did at 1950, before going up some more. Good luck beating the S&P index ETF this year like you haven't done for the past 5 years.