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.
1 comment:
Yeah, I think techsis is BS too. I flagged this one for my buddy and all he ever says when I rip on Mish or Richard Russell for this hogwash is "Wow, Taylor is so smart, he knows way more than those idiots Mish and Richard Russell." Backdoor argument from intimidation, methinks.
Mish has some pretty bright posts. His technical analysis and increasingly frequent grassroots lobbying efforts are not examples of them.
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