I like my Cryola Charts. Technical analysis can easily get mired in complexity. The brain is a pattern matching computer and if you give it enough randow guff it will see something. Who hasn’t seen a running animal in a cloud or a face in the pattern of a marble slab or decorative curtain. (Well I hope you have or I’m back on the meds.)
As such drawing lots of lines on stock charts can lead to noting but 50/50 guess work and in the end its easy to think you are smart if you are ‘right’ half the timed. Sadly it wont boost the brokerage account.
So in uncertain times I like to keep my charts as simple as possible.
Remember charts are excellent at predicting the past! (Hold that thought.)
So how about this chart of UK v US.
For a brit its sobering.
It’s a picture of abject failure.
..but what now.
As regular readers will know I like a hocky-stick chart. As such this is interesting.
There are so many reason to be bearish, but Ive got an itch it’s a bullish picture.
The good news is the set up is simple. I’ll get out my Cryola and scribble.
It a set u so old, its hard to know it. When the FTSE breaks out of this box its going to ride! To me the probability of up is 70% call it for you British gamblers at least 2/1 on favourite.
Morale in the UK is the lowest I have experienced in my life even including the depressing 1970s, so its deeply contrarian to imagine the UK can get its stock market game on. But we should trade what we see and the sign posts are in. If we get through 11000 then what then happens will be epic. Down through 10,000, it will probably be epic too, but not in a good way.