buysider

Sell-Side Analyst on Fannie: A History of Being Wrong

years ago the good folks at the Value Line Investment Survey added technical analysis to their fundamental approach to securities prognostication. And guess what? They found that paying some attention to technical aspects of the securities pricing helped them ( Value Line) make better forecasts.

Many fundamental analysts pay attention to technical characteristics of securities they follow. If the analyst(s) who rated FNM a buy all the way down paid any attention to technical aspects they probably would have been a little more circumspect in their recommendations.

I am NOT saying that technical analysis is the be all and end all- hardly-it is just another tool to use in evaluating the overall risk reward when investing