DoubleLine Deputy Chief Investment Officer Jeffrey Sherman and Portfolio Manager Samuel Lau welcome Fairlead Strategies Founder and Managing Partner Katie Stockton, the first technical analysis specialist to visit The Sherman Show. Ms. Stockton kicks off the show by recounting what drew her to technical analysis, a discipline she says is best used for risk management; her accreditation as an official Chartered Market Technician; and why she launched Fairlead (1:43). The three then get into what technical analysis is (5:44), the main reason it is useful (10:26) and which asset types its most helpful in application (14:12). “It’s useful for anything that really has a price and liquidity,” Ms. Stockton notes. “It’ll be as useful for GE as it is for one of the altcoins.”
They also discuss, among other topics, how Ms. Stockton works with clients who have more of a fundamental tilt (24:07), her stance on the Elliott Wave (27:45) and what she would say to young technicians getting into the business (29:18). Ms. Stockton encourages people interested in technical analysis to give part of their screen over to tracking a chart. “You’re just going to start seeing things,” she says, “whether it’s price patterns or moving averages or acting as support.” This episode was recorded March 9, 2023.