We have all heard the phrase “ Past performance is not indicative of future performance”. If that’s true, then why do we bother to study charts?
We have all of these funny sounding metrics we look at – MACD, RSI, Fibonnacci retracements, Stochastics and the like. Why bother looking at the past equity behavior if it doesn’t tell the story? Well, perhaps it’s another common phrase we hear that motivates us to spend our time on such things. It goes something like “Those who cannot remember the past are condemned to repeat it.”
We have all witnessed an amazing rally in our stock market during the month of October. It seems that we went from the world ending to everything being just fine in a matter of weeks. Now what? What can we look at in this market to decide what might be coming next? ( Here comes the scary part…) (more…)