As computer algorithms continue to change, market analysis is also evolving, putting the spotlight on the value of classic technical analysis.
The Energies sector is one of the more muddled, with natural gas showing the clearest picture. If that doesn't frighten you, nothing will.
Monthly charts for US stock indexes are littered with failed classic technical reversal patterns.
At the beginning of every month, I put together long-term analysis of a variety of monthly charts for investors, both individual and institutional, interested in the commodity complex. This covers all the major sectors, as well as the three main US stock indexes. I’ve been doing this for a number of years (decades?), consistently being made aware of the evolution that has been, is, and will continue to take place. (I forget, is “evolution” one of those words that have been banned by the new US administration? I’ll have to check into that.) Just as humans (and other apes) lost their tails roughly 25 million years ago (theoretically) because they were no longer useful, so too is market analysis losing its technical side, at least the classical analysis we studied and honed over the past number of decades. I’ll be talking about this with Barchart’s Senior Market Strategist John Rowland in this coming Friday’s Market on the Close program. Stay tuned for details.
