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Ideas Farm: Bouncing back

Some technical indicators look positive for equities. Should investors pay attention?
Ideas Farm: Bouncing backPublished on October 25, 2022
  • Support lines tested
  • (Depending on your measure)
  • Lots of idea-generating content…

According to Benjamin Disraeli (or possibly Mark Twain), “there are three kinds of lies: lies, damned lies, and statistics”. To this list, we might add a fourth category: technical indicators.

Maybe 'tautology-as-truth' is a better description. While data can be manipulated to spin an argument, technical analysis often feels like reading tea leaves, palms or stars. It’s easy to identify, measure and plot price movements on a stock chart, but that does not a strong argument make.

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