ItsJustMe

Adventures in Technical Analysis, Jim Cramer Edition

Fundamental analysis is for long-term investors like Buffett. Technical analysis is for short-term traders. I've made a LOT of money over the years using technical analysis and I know people who have made millions more than me so I have to chuckle at someone suggesting it's financial astrology.

Since technical analysis is based on the study of human crowd behavior, I suppose that it's good for writers to tell the crowd it's nonsense so that it will continue to work. Technical analysis is also based on probabilities and approximations which is where Cramer - a fundamental investor by nature and not a technical trader - screwed up. You NEVER, NEVER, NEVER rely on just one technical indicator no matter how reliable it has been in the past.

I've been short this market since May 15th and neither I nor any of the technicians I follow were expecting a huge market bounce last week so I don't know where Cramer got this mysterious "slam-dunk oscillator" he was using.

And congrats on the video - that was funny!