STA Blog

Gloomy technical analysts get press coverage

Earlier this year – mid-February to be precise – the Weekend FT’s Money section printed an article by John Dizard.  Considered one of their more serious commentators, the piece was entitled ‘Technical analysts have a pretty gloomy outlook for risk capital’.  Instead of the negative drivel the Lex Column sometimes puts out, he did have a good stab – in just a very few words – to introduce the subject to the layman.  Please us the link here to read the whole article.

What caught my eye were the comments he attributed to Martin Pring, his use of charts relative to one another, say for example junk bond yields versus US Treasuries or high tech equities versus shares on consumer durable companies.  On the former he (Pring) says, ‘it has been a great indicator for the past 10-15 years, much more than it was before then.  It depends on whether you have a stable or unstable financial system.  Now I would say that credit players tend to be smarter than stock players’ – which will no doubt raise stockbrokers’ hackles.

Sorting through my chaotically filed notes I managed to find jottings made when Mr Pring addressed us at July 2012’s STA monthly meeting.   A talk entitled ‘Investing in the Second Lost Decade’ parallels with Japan spring to mind.  In his view a long term trend is 15-20 years (in line with his bond yields idea), while a cyclical move lasts 9 months to 3 years.  Predicting another 6 years of recession some may beg to differ though probably not the man on the proverbial omnibus on Main Street, USA.

He also stressed the importance of commodity prices on those of equities, noting that since 1830 stock markets rally in tandem with those of raw materials.  For this reason he likes to deflate indices by the Consumer Price Index.  Asset prices are sensitive to inflation, and now deflation, plus the ratio between these two.

A video of his presentation is available in the member’s are of the STA web site (  He has too many books to list here but perhaps his ‘Technical Analysis Explained’ is his best all-rounder while ‘Martin Pring on Momentum’ focuses on his forte.

Posted in Finance, Markets, STA news, Technical Analysis, Trading, Trending
Tags: , , ,

The views and opinions expressed on the STA’s blog do not necessarily represent those of the Society of Technical Analysts (the “STA”), or of any officer, director or member of the STA. The STA makes no representations as to the accuracy, completeness, or reliability of any information on the blog or found by following any link on blog, and none of the STA, STA Administrative Services or any current or past executive board members are liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. None of the information on the STA’s blog constitutes investment advice.

Not ready to join? Stay Updated

If you want to learn more about membership and being part of the STA, sign up for our updates so we can keep in touch.


Monthly Meetings

The STA holds 11 monthly meetings in the City of London, including a summer and Christmas party where canapés and refreshments are served.


Latest Videos

As a service to our members, many of whom are unable to attend all our monthly meetings, we have been making videos of meeting presentations for several years.


STA Libraries

The STA has an extensive library of classic technical analysis texts. There are over 1000 books in the collection. It is held at the Barbican Library with a smaller...


Market Technician

Latest research and news

More Info

World Class Tutors

STA Course Lecturers

More Info


Be part of something special

More Info


View latest posts

More Info