Show Me The Money!

Technical analysis, or charting, is nothing more than the art of following the flow of money.  And just in case you didn’t know, money doesn’t lie.  Investors, analysts, media, and Wall Street firms can and will say what they please.  They will broadcast their opinions and advice very freely and generously.  But after all is said and done, their true beliefs can only be found by tracking how they placed their bets, by monitoring how and where they spend their money.  I cannot tell you how many times a major brokerage firm will upgrade or reiterate a stock as a buy, when, in fact, their largest institutional clients, whom they advise, will be selling the same stock.  Have you any idea how often a corporate director and other upper level management in a firm will make glowing remarks about their company’s future outlook, while every employee from the CEO down to the janitor is dumping the stock on the secondary market?  Money brings out the truth.  Tracking its movement helps to remove the “white noise”, the misleading exterior.  It reveals the genuine intent of the market players.  This is why we use charts.  We use charts to track the footprints of money.  Money and volume moves stocks.  So don’t show me an article or point me to media coverage.  Show me the money!