by David Brady
My primary method of trading and investing is based almost exclusively on applying the Mosaic Theory. In simple terms, this means taking seemingly disparate pieces of information, connecting the dots, and forming a cogent hypothesis for what’s ahead. In fact, I use this approach in almost everything I do. It’s like throwing mud at a wall and seeing what sticks. It may mean more work in terms of research, but ultimately the payoff is well worth the effort.
I call the process I apply to the financial markets FIPESTT xM, which stands for Fundamental Analysis, Inter-Market Analysis, Positioning, Elliott Wave Theory (and Fibonacci Levels), Sentiment, Technical Analysis, and Trends, all while being mindful of potential manipulation in ever-increasingly centrally-controlled markets. There are those who are religious about one or more of these tools and dismiss all others out of hand, but the simple fact that so many people use each of them gives all of them credibility, imho.