This week, I speak with John Roque, a highly regarded technical analysis. He spent the first part of his career on the sell side, working as a technical analyst for Lehman Brothers and Natexis. He moved to the sell side, joining George Soros Fund Management. He now works at Key Square Capital, a Soros-seeded hedge fund.
Roque explains the importance of objectivity when considering individual stocks. He explains why the technical side is so attractive to a trader or investor. The most challenging thing people in the market face is staying invested during long bull markets, and not jumping into stocks that are falling and in bear markets.
He notes “Charts are the language of Wall Street” – and regardless of the differences between sell side and buy side research, everyone looks at a chart prior to making a buy or sell decision.
Some of his observations:
“Technology has made technical analysis even more rigorous – it is no longer dominated y a handful of technicians who did their charts by hand each day; now it has been democratized
“ETFs are not problematic when we go up; they may be problematic when we go down.”
“People may not realize how their risk profile changes when they own ETFs.”