{"id":78090,"date":"2015-09-10T17:31:41","date_gmt":"2015-09-10T21:31:41","guid":{"rendered":"http:\/\/countingpips.com\/?p=78090"},"modified":"2015-09-10T17:31:41","modified_gmt":"2015-09-10T21:31:41","slug":"stock-market-forecasts-why-you-should-consider-technical-analysis","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2015\/09\/stock-market-forecasts-why-you-should-consider-technical-analysis\/","title":{"rendered":"Stock Market Forecasts: Why You Should Consider Technical Analysis"},"content":{"rendered":"<div id=\"inves-2640842790\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">September 10, 2015<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><h3 style=\"margin-top: 0px;\"><span style=\"font-size: small;\"> Technical versus fundamental analysis? The winner is&#8230; <\/span><\/h3>\n<h3 style=\"margin-top: 0px;\"><span style=\"font-size: small;\">By Elliott Wave International<\/span><\/h3>\n<p>Editor&#8217;s note: You&#8217;ll find the text version of the story below the video.<\/p>\n<div style=\"width: 620px;\"><!--FEATURED VIDEO--><iframe loading=\"lazy\" src=\"\/\/www.youtube.com\/embed\/TYgaFBcCMfE?modestbranding=1&amp;rel=0&amp;showinfo=0\" width=\"620\" height=\"380\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><!--\/\/FEATURED VIDEO--><\/div>\n<p>Technical versus fundamental analysis: Which approach yields better investment results?<\/p>\n<p>A new study by three finance professors offers an answer.<\/p>\n<blockquote><p>The focus of their study were a thousand pairs of recommendations made between November 2011 and December 2014 on the TV show &#8220;Talking Numbers&#8221; &#8230; The first half of each pair was a recommendation from a top technician about a stock in the news; the second half was a recommendation about that same stock from a leading fundamental analyst. [Marketwatch, Sept. 4]<\/p><\/blockquote>\n<p>This chart shows the results:<\/p>\n<p align=\"center\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.elliottwave.com\/images\/freeupdates\/image\/MW-DT669_hulber_20150903112637_MG.jpg\" alt=\"\" width=\"460\" height=\"322\" \/><\/p>\n<p>In the nine months following each recommendation, the stocks technical analysts identified as strong buys on average outperformed the broad stock market by 7.9%. The stocks they mentioned as strong sells underperformed by 8.9%.<\/p>\n<p>By contrast, the strong buy recommendations from fundamental analysts underperformed the overall market during the same timeframe. More than that, the fundamental analysts&#8217; strong sell recommendations performed closely to their strong buys.<\/p><div id=\"inves-3218034228\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p>Technical analysts were the clear winners.<\/p>\n<p>Elliott wave analysis of financial markets is a specific form of technical analysis.<\/p>\n<p>Our subscribers have recently been well served by the Elliott wave method and other technical indicators. Consider this commentary from the August 19 <i>Financial Forecast Short Term Update<\/i>:<\/p>\n<blockquote><p>The decline from yesterday&#8217;s highs &#8212; 17,568.40 in the Dow and 2103.46 in the S&amp;P &#8212; is impulsive (i.e., five waves) &#8230; The impulse wave down indicates that the next larger-degree of trend is down. &#8230; The weakening internal measures of breadth, volume and momentum are bearish.<\/p>\n<p>&#8230; Nearly every index declined in unison, each breaking their respective lows from Wednesday morning&#8217;s weak open. &#8230; At today&#8217;s intraday lows, there were more than five stocks down for every one up on the NYSE. The up\/down volume ratio was lopsidedly bearish too. &#8230; The closing a\/d was 0.33:1, with three stocks down for every one up. Down volume on the Big Board was 81% of up plus down volume. &#8230; When will selling pressure again materialize to drive prices significantly lower? The answer is that it&#8217;s starting to materialize now.<\/p><\/blockquote>\n<p>The S&amp;P 500 gapped lower at the open during the next two trading sessions (August 20-21).<\/p>\n<p>On August 24, the intraday low for the S&amp;P 500 was 1867.01 &#8212; down nearly 13% from its May 20 peak. The Dow&#8217;s intraday low was 15,370.30 &#8212; down 16.4% from its May 19 peak.<\/p>\n<p>After the Labor Day weekend (Sept. 8), stocks traded well above those lows.<\/p>\n<p>But beware: The Elliott wave model and other technical indicators suggest that more market turmoil is ahead.<\/p>\n<p>Technicians tend to rise in prominence in bear markets, and they appear poised to do so again.<\/p>\n<hr \/>\n<table class=\"body\" style=\"border: solid 5px #EAEAEA; padding: 10px;\">\n<tbody>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"top\">\n<h3>Video Crash Course<br \/>\n<a href=\"http:\/\/www.elliottwave.com\/r.asp?acn=9cp&amp;rcn=aa550&amp;dy=aa091015&amp;url=http:\/\/www.elliottwave.com\/club\/Elliott-Wave-Video-Crash-Course3\/default.aspx?code=20297%26articleid=5878\"><strong>Learn the Why, What and How of Elliott Wave Analysis<\/strong><\/a><\/h3>\n<p>Financial media use news and economic events to explain market moves. Steer clear of this misguided approach. Learn what really moves the markets with The Elliott Wave Crash Course.<\/p>\n<p>In this series of three FREE videos, Senior Tutorial Instructor Wayne Gorman demolishes the widely held notion that news drives the markets. Each video will provide a basis for using Elliott wave analysis in your own trading and investing decisions.<\/p>\n<p><a href=\"http:\/\/www.elliottwave.com\/r.asp?acn=9cp&amp;rcn=aa550&amp;dy=aa091015&amp;url=http:\/\/www.elliottwave.com\/club\/Elliott-Wave-Video-Crash-Course3\/default.aspx?code=20297%26articleid=5878\"><strong>Watch the Video Crash Course Now &gt;&gt;<\/strong><\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<div>\n<p style=\"padding-top: 10px; border-top: solid 1px #CCCCCC;\"><em>This article was syndicated by Elliott Wave International and was originally published under the headline <a href=\"http:\/\/www.elliottwave.com\/r.asp?acn=9cp&amp;rcn=aa550&amp;dy=aa091015&amp;url=http:\/\/www.elliottwave.com\/freeupdates\/archives\/2015\/09\/08\/Stock-Market-Forecasts-Why-You-Should-Consider-Technical-Analysis.aspx\"><strong>Stock Market Forecasts: Why You Should Consider Technical Analysis<\/strong><\/a>. EWI is the world&#8217;s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Technical versus fundamental analysis? The winner is&#8230; By Elliott Wave International Editor&#8217;s note: You&#8217;ll find the text version of the story below the video. Technical versus fundamental analysis: Which approach yields better investment results? A new study by three finance professors offers an answer. The focus of their study were a thousand pairs of recommendations [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-78090","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/78090","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=78090"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/78090\/revisions"}],"predecessor-version":[{"id":78091,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/78090\/revisions\/78091"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=78090"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=78090"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=78090"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}