re: rio distribution happening?? Hi Christian, I'm always happy...

re: rio distribution happening??
Hi Christian,

I'm always happy to hear views that are contrary to mine as long as they have some basis.

Many of the fundies in the marketpace have dealt with T.A. and many will look at a price over a period to check that it is consistent with their analysis of the company's share price direction.

However many studies have looked into T.A. to see if it is a tool that can be used profitably. The only method that has proved itself over a period is the opposite of following a trend. It is one that says,"Sell stocks that have gone up and buy stocks that have gone down" (re-weighting) which is purely using a mathematical calculation to follow a benchmark (commonly an index) called Index tracking. Why is this profitable? Because it's cheaper than doing the research.

I'm comfortable more money has been spent trying to find a successful T.A. method then you and I will ever get in our lives.

I remember a quote from a university mathemation working for AMP saying to me in the late eighties,
"If you torture data long enough, you can get it to say anything".

Cheers and good luck

PS A distribution is payment from profit by a fund (like a dividend).