Wednesday, January 08, 2014
Why I am Not A Chartist
Charting is an occult practice. Humans seek patterns, even invent them when there are none. Witness the 6 years of GDX (Gold miners ETF)and F (Ford) lockstep:
Now see what happened in the ensuing 18 months.
How about this then? Gas prices. Lower highs and lower lows. Clearly the future is spelled out for anyone who can read a graph.
Or is it? Same chart expanded to ten years from 18 months:
Here's how far I trust charting: