Citigroup Fires “Technicians”
The debate continues:
Citigroup Eliminates Stock Technical Analysis Group
Trend followers are technical traders. However, unlike the fired group at Citigroup (and so many other banks and hedge funds), trend followers do not “project price trends in stocks”.
This distinction is huge. It is a core issue explained in my book Trend Following. That said, many still don’t get that there is a bogus form of technical analysis aimed at “prediction” and a very valid form of technical analysis aimed at “reaction” (used by trend following traders). Read more from another author missing the distinction:
Technical analysis–you’re fired! Is there any value to this controversial stock picking method?
I don’t know if the good professor Burton Malkiel (author of A Random Walk Down Wall Street) takes a position on technical trend following trading, but we sure hope he doesn’t deny that it works!
A great trend follower Larry Hite once said:
“I have noticed that everyone who ever told me that the markets are efficient is poor.”
Larry Hite
Founder, Mint Investment Management Company
