Monday, November 17, 2008
Marginalizing Mish - Mike Shedlock
Mish is a pretty astute fellow whose blog I don't read enough of.
But he lost points with me the other day with his post Bullish Divergences on $HUI and $OSX, S&P Crash Count Updated Again.
There he asserts that both oil service stocks and gold mining stocks are acting well; they are outperforming the underlying commodities. I happen to be long both sets personally. But here was his unsettling analysis:
The $HUI held well above its low although the price of gold (see chart below) did not. This is a bullish divergence for the $HUI if there is follow through.
Crude made a new low but the oil services sector did not. Once again this is a bullish divergence if there is follow through.
"Bullish" provided there is "follow through"?
Great Mish. Thanks for the tautological nonsense. Last I checked, *follow through* and *bullish* both referred to the same exact thing.
Translation - If they go up, he's bullish.
I've Marginalized this Technical Analysis crap before.