Loading ...Technical analysis of markets begins to suspect its obsolescence
Submitted by cpowell on Tue, 2014-07-29 02:08. Section: Daily Dispatches
10:26p ET Monday, July 28, 2014
Dear Friend of GATA and Gold:
Acknowledging that the usefulness of technical analysis is increasingly doubted as market manipulation intensifies, newsletter writer and technical analyst Tim W. Wood notes today that manipulation is as old as markets themselves and quotes various authorities to the effect that manipulation cannot long defeat any market’s “primary trend.”
But Wood’s authorities all precede the seizure of absolute economic power by the U.S. government, implemented by the Federal Reserve and Treasury Department and Treasury’s Exchange Stabilization Fund — the power to create infinite amounts of money and to trade secretly in any market, power that even former central bankers now acknowledge as “financial repression.”
Wood argues that “the very basis of technical analysis is that everything is discounted into price.”
Really? So on April 11, 2013, did technical analysis forecast the coordinated and overwhelming attack on the gold market by central banks that would begin on the following day? Does the foresight of technical analysis today really extend into government chancellories as policies are decided privately and then implemented by intermediaries through various instruments and mechanisms, from derivatives to high-frequency trading?
Of course the only entities with such clairvoyance are governments themselves, and it arises not from any technical analysis but from electronic surveillance.