Posted To: MBS Commentary
Have you ever wondered why technical analysts and other seemingly savvy market commentators tend to reference moving averages that are nice, round numbers- -25, 50, 100, 200-days? What about 75? Why not 150? Why not 137.3? Indeed, why should we pay more attention to one moving average versus another simply because it is calculated based on a nice, tidy factor of 100. I can appreciate that the concept of “100” is a big deal in America, relative to say, 88, but it’s just the opposite in Japan (or so I’ve been told). Whereas 100th birthdays are the big deal here (just ask Willard Scott and his lurid pantry of jam jars), it’s the 88th birthday that’s the big deal in Japan. I don’t bring Japan up for any particular market-related reason–only to illustrate the point…(read more )