Ralph Acampora, CMT, senior managing director at Altaira Ltd., and Alan Shaw, CMT, now retired from the business, discuss the creation of technical analysis as we know it today. The two trailblazing analysts share colorful stories from the past, and reveal how charting techniques can be used to improve investing decisions. Filmed on April 4, 2019 at the CMT Association’s 46th Annual Symposium in New York.
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The Godfathers of Technical Analysis (w/ Ralph Acampora & Alan Shaw) | Interview
For the full transcript: https://rvtv.io/2UX2k0c
Hi. This is Joe Perry from Real Vision. We're here at the CMT Symposium, and we are pleased to present you this interview between Ralph Acampora and Alan Shaw, two legends not only on Wall Street, but also in technical analysis. They're here to provide you with a glimpse into the future of technical analysis, as well as to provide some reflection into the past. Please enjoy this episode.
Hello. My name is Ralph Acampora. And I am so happy to say that I'm with one of my dearest friends, Alan Shaw. What do you like most about the years you've been in Wall Street? Is it the subject, the people?
Well, I have a very personal gratitude, that is the fact that I had the pleasure and the ability to experience one of the greatest bull markets in the history of the United States and lived through it and have been a participant in it, I mean, a once-in-a-lifetime type thing, coming in the business in the late '50s and then going all through the '60s. And finally the market broke through 1,000 and then 10,000 and now 20,000. It's kind of fascinating when you think back. You obviously got to look at the long-term picture on a large scale, keep it in perspective.
Yeah, a lot has happened. What we do, as you just mentioned, we follow the markets. But I know you've had in your early days had a beginning in fundamental analysis. Tell us a little bit about that because you have an interesting story about when you were right.
Well, I flunked out of college in my freshman year. And I have since been given an honorary doctorate law degree from that same university for my Wall Street accomplishments, you might like to know.
How much you have to pay for that? That's another discussion. I'm only kidding.
But the point was that I really didn't have any background in finance except accounting, my one year. I passed that. And I discovered that Harris Upham-- I was doing a lot of work for Ralph Rotnem statistically, overbought, oversold, indicators, or just doing research for him. In fact, my first computer was a slide rule. And I used to do relative strength analysis, calculating ratios with the slide rule, dividend yields, PE multiples, all that stuff.
And they had specialists in the research department. And I was in my early 20s at the time and again, without any formal education. But I went to Ralph, and I said, you don't have anybody specializing in the consumer non-durables, like foods, beverages, soft drinks, whatever.
And he said, well, would you like to take a crack at it? i said yes, because I think that there's a tremendous growth opportunity, that these are not really widow and orphan defensive stocks because of the growth of things like frozen foods, convenience foods. The profit margins on these products were incredible.