This article was originally posted at http://www.edwards-magee.com/2010/01/14/bull-market-bear-market-nu-mu-lessons-in-semantics/ on Jan 14, 2010. There is a famous zen story (mondo) about a monk who asked, does a dog have the Buddha nature? To which the zen master answered, mu. Mu means in this case both “no” and “nothing”. When asked if we are in a bull market we answer, Nu? Good god, what is the point? our readers ask. Here’s the point. As you may know one of Magee’s books we edited is The General Semantics of Wall Street which concerns itself with the way we think about the market and how it affects our decisions. If you think of this market as a bull market you react one way. If you think you are in a bear market rally you react another. Good god, does Bassetti think at all our readers are saying. Mu. Nu? Best not to think at all. Best to analyze. So we do

Last month, we published an article in Technically Speaking entitled “US Stock Market Returns – What is in Store?” and asked if it was an example of technical analysis. We received several responses. From Kevin MacDonald, an Investment Advisor with Mackie Research Capital, one of Canada’s largest independent full service investment firms: Regarding the article “US Stock Market Returns – What is in Store?” in the most recent Technically Speaking, I am a classical technician and so would refrain from forming an opinion on a question that seems to be more of a quantitative issue. I have another question, though, that arises from your original question: has the SPX p/e ratio ever been plotted in the same classical fashion as the SPX price is plotted? Can a p/e “price” chart and classic TA techniques reveal anything useful about the duration and strength of p/e trends, reversals, measured moves, etc.? Quite possibly you can’t

Editor’s Note: Technical analysis is a complex field. Larry has allowed us to reprint one of his daily reports which demonstrates this. There is some commentary, but this report presents an overwhelming amount of data in the charts and tables that make up the bulk of the analysis. What Larry does well is present an amazing volume of information in a clear and usable format. Too often, new analysts don’t understand the importance of considering multiple data points and looking at as many variables as possible. That is probably because they don’t know how to organize the data. The report that follows is an excellent example of consistently portraying the technical conditions of the market, sectors, and individual stocks. It also illustrates the importance of looking at the data differently than everyone else to spot trades before the crowd – Larry’s sector RSI charts are pictures that are worth a thousand

MTA May Symposium 2010 – Don’t Miss Out! Register today and join 200 of your colleagues and fellow MTA members at this year’s MTA Annual Symposium. This event will be an excellent opportunity to further your networking while expanding your education of technical analysis. Sign up today to join this growing list of attendees which is on pace to be one of the highest attended events in recent MTA history. Keynote Speakers To register online, click here. Alternatively, you can register over the phone by calling Cassandra Townes at 646-652-3300. For complete event information, please click here. MTA Knowledge Base – Recent Additions! The MTA would like to announce the following articles have been added to the MTA Knowledge Base. Equities: Blending Technical And Fundamental Analysis by Sam Subramanian The Trend(Line) Is Your Friend by Nicholas McGaw Capturing Forex Trends In Seven Steps by Billy Williams Fixing Bollinger Bands by David Rooke MTA Educational Web Series – Upcoming Schedule! Registration is now