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Jeff Gundlach Is Taking A Brian Fantana Approach To Technical Analysis

Jeff Gundlach Is Taking A Brian Fantana Approach To Technical Analysis

I’ve been over this before, but I think I need to reiterate it.

Bond king for the post-Gross world, exposer of WSJ conspiracies, and man who showed up at Sohn dressed in a Jack Nicholson Joker costume, Jeff Gundlach, is never wrong.

If you think back to last summer (when Jeff similarly channeled Nicholson by axing his way into the Twitterverse, Jack Torrance style, as the terrified financial news media cowered in the corner clutching a small kitchen knife like Shelley Duvall), you’ll recall that the DoubleLine boss chose @TruthGundlach as his social media handle.

See, Jeff was sick and tired of just sitting idly by while the rest of us idiots fumbled around in the dark in search of “truth” and it occurred to him that when it comes to fighting “fake news” (and especially fake Gundlach news, which he swears to Christ is actually a thing), the only thing he needed to do was make “Gundlach” synonymous with “truth”. Because the “truth” cannot (by very definition), “lie”.

So if “truth” = “Gundlach”, well then “Gundlach” = “truth”, ergo everything that comes from that Twitter handle is true by its very nature.

Again: Gundlach is never wrong precisely because he is “truth” personified.

Given that, I suppose I’m going to have to recant when it comes to my long-held belief that technical analysis is the market equivalent of going to a palm reader, only without the incense and the voodoo dolls and Epiphany Proudfoot.

Here’s Advisor Perspectives, from an article published earlier this week:

Few investors as well-respected as Jeffrey Gundlach admit to using [technical analysis]. But yesterday, he explained why he relies on technical analysis under certain conditions.

Technical analysis will work some of the time and fail some of the time, according to Gundlach. It works when the market’s resistance and support levels are “in sync” with sentiment signals, he said.

“When those things marry together,” Gundlach said, “technical analysis works 70% of the time.”

Got that? He is (almost) literally pulling a Brian Fantana.

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I don’t know, Jeff. I’m afraid I’m going to have to be the Ron Burgundy to your Brian Fantana because “that doesn’t make any sense.”

But then again, as noted here at the outset, it is impossible for Jeff Gundlach to be wrong, so I guess I’m the idiot.

I wonder what the CIO of Vomiting Camel Asset Management would say.

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