Robert W. Colby, CMT, Interviewed In Stocks & Commodities Magazine

A lengthy interview with Robert W. Colby, CMT, was published in the January 2020 issue of Technical Analysis of Stocks & Commodities Magazine. Leslie N. Masonson conducted the interview, which is eight pages long and includes several highlights touching on Colby's use of technical analysis over the course of his career, last month.

On one topic, the role that sentiment, seasonal and cyclical indicators play in his investment strategy, Colby observed, "these are supplemental studies that give interesting and sometimes useful background information, but they are not practical for signal generation and trade timing because they easily can be overwhelmed by trend and momentum. They can be too early or too late. For example, the majority of investors have been bullish most of the time for more than 10 years, but a short-selling contrarian would have had a rough time due to trend persistence. Cycle lengths shift around over time, and so cycle dates need price confirmation. The famously bullish fourth quarter seasonal tendencies would have hurt you in 2007 and 2018. As for economic data, the stock market is a leading economic indicator, typically turning six to nine months ahead of the economy, so economic indicators are late. Monetary indicators can be early or late. Although not useful for trade signals, these indicators are helpful for understanding the background that may drive the larger price trends."

You can read the full interview on Stocks & Commodities' website: A Discussion with Robert W. Colby, CMT.