Technicals say: 90% cash

Corona Del Mar, CA

Howdy Friend!

Technical analysis is due for a changing of the old guard…

…because it absolutely is not surviving computerized testing.

Even simple indicators like MACD are being used backwards. I wrote about that 20 years ago and nothing has changed.

Recent strength in indicators like MACD and Fibonacci zones have some technical traders bullish for all the wrong reasons.

If I look at what actually works in TA — the inverse of Fibonacci trading or selling MACD buy signals — then they would see that 90% of mega caps are on a sell signal as of this morning.

Of all the mega cap stocks we track, only Intel $INTC remains on a “buy” signal using the Anti-Fibonacci Method.

I lose a lot of subscribers every time I dunk on subjective TA. The dogma of chart patterns and trend lines and Fibonacci retracements courses through the veins of millions of traders — including many of my friends and colleagues.

It takes strength and fortitude to admit when you're wrong.

For example, you may have heard rumors floating around that chart patterns were debunked years ago.

That was us.

I dropped $300k and 18 months of my life (along with three other team members) on a project to discover the most profitable chart patterns with a computer — and then just trade those.

It sounded like a great idea.

It was a complete bomb. I was wrong.

Turns out there are no profitable chart patterns. We accidentally disproved any technical analysis based on chart patterns (which is most of it).

To those that argue with me about it — I say “prove it.”

If I haven't scared you off yet, and would like to learn more about Anti-Fibonacci trading, click here now >>

Trade smart,

Dan “Prince of Proof” Murphy

Government required disclaimer: The results listed herein are based on hypothetical trades. Plainly speaking, these trades were not actually executed. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under (or over) compensated for the impact, if any, of certain market factors such as lack of liquidity. You may have done better or worse than the results portrayed.

Technicals say: 90% cash

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