Technical Analysis seems to be taking a bigger role in the day to day decisions of the larger broking houses. The buy and hold strategy seems to have gone by the by.
Although still keeping the same % mix of an index or grouping is important, many broking houses seems to act more like traders and use leverage products to make $ work harder., whilst still keeping the same % mix.
This can act to the benefit of us smaller traders who can then just trundle along with the trends being defined by the big boys.
The concept of trade the trend (or the often quoted "the trend is your friend") has never been more appropriate.
The following quote on CSL I thought summed it up really well "Technically, it can get down to $19 but it won't be in really negative technical territory until it hits $17 and you can throw the fundamentals out the window as it's all being driven by the technical analysts,"
In summary with the number of T/A's running around in the broking houses, expect more decisions based on T/A. So don't wine about "why is my share going south when the fundamentals indicate it should be going north", just accept it, and then trade it.
