All too often analysts overstate their case for a bull or bear market, but in a recent interview, Louise Yamada, CMT presented an ethical and balanced delivery. Technical analysts seem to be the most widely quoted when they can speak in ominous sounding terms. Technicians are providing analysis of the current market action, and news most often focuses on the negatives in any area. That reality may explain why negative ideas seem to be more broadly covered in the markets. The Hindenburg Omen, as one example, always seems to get ample press coverage, as does any forecast of a large price decline. The death cross is another example of a headline grabbing term in technical analysis. The death cross refers to a sell signal that occurs whenever the 50-day moving average crosses below the 200-day moving average. It can occur in any market, but most news coverage focuses on the stock

This newly released book (FT Press, 2011) should be the model other authors use to present ideas of the masters in technical analysis. Ed begins with a review of the life of George Lindsay. The short biographical section is a valuable addition to the book, and demonstrates why biographies are a basic building block in the study of history. To understand the ideas and actions of great people throughout time, historians have long used biographical background to gain insight into their thinking. This technique has been neglected in technical analysis and Ed is the first that I’ve seen who adapts this strategy for his overview of Lindsay’s techniques. With the thoroughly researched, but brief, story of Lindsay’s life, Ed allows the reader to understand the thinking that went into the techniques and analysis that Lindsay provided. Lindsay had an interest and talent in art. This may help explain how he could observe

How would you describe your job? I have been trading my own money since 1992. At some times, I have worked as a trader with a few local companies. What led you to look at the particular markets you specialize in as opposed to another tradable? TREND, is my basic requirement in a market to trade. I switch from currencies to commodities to Pakistani stocks depending on the trend. Do you look at any fundamental or economic inputs to develop your opinions? Since I am a short term trader I do not look at the fundamental side of analysis to decide on an entry. But I am watchful of releases of major economic data and I avoid trading before or immediately after these releases. What technique do you rely on the most? Can you describe this tool? The approach that I have used for over ten years now is based on failed breakouts from formations and TD

Many traders cite those four words as the most expensive phrase in the English language. When investors become overly euphoric, they find new ways to justify high stock market valuations because this time is different and therefore the old tools which point to a possible bubble must be wrong. Believing that this time is different allows them to ignore the signs that a disaster is possible. It was just a little more than a decade ago when everyone knew it was different this time because of the internet. Price-to-earnings ratios didn’t matter because companies didn’t need earnings, some argued. Growing companies could be valued with a new P/E ratio, and the price-to-eyeballs ratio found its way into investment analysis. In the end, many relearned the truth that revenue is needed in order to pay the bills and allow a company to continue operating. Economists Carmen Reinhart and Kenneth Rogoff have documented the