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"The White-Haired Stock Guru" Serenity: Technical analysis is more like "trader astrology"; we should return to fundamentals and capital structure
Svmuu News: Serenity, known as the "White-Haired Stock Guru," posted on X that technical analysis (TA) is more like "astrology" for traders—essentially a combination of confirmation bias and market psychology used to gauge market sentiment, rather than a core factor determining prices. The sharp rises in many individual stocks are not driven by chart patterns, but rather by fundamentals and expectations. For example, SIVE’s approximately 1,900% surge was driven by the market’s revaluation of future revenue expectations related to JBL and GFS; while AXTI’s approximately 8,000% surge is linked to industry dynamics such as indium phosphide substrates, demand for photonics, and export controls. Technical analysis can at best reflect the psychological expectations of market participants; while it may be useful for identifying entry points, the factors that truly determine stock price movements should include industry-wide thematic linkages, shifts in earnings expectations, the macroeconomic environment, earnings report performance, and free-float structure. A stock’s long-term upside potential should be determined by fundamentals and capital structure, rather than a “faith in charts.”
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