Technicals Analysis of College Football

It’s Finally Here

Not many weekends are as special as opening weekend for college football. It's a time when anything feels possible, when hope springs eternal, and when the love of the game is at its purest. The air is filled with the sounds of whistles, pads clashing, and the cheers of the crowd—all signaling that the long-awaited season is finally here. With over 100 games being played this weekend, it’s impossible to watch them all live. So, between plays, we pull up our phones to check the scores of other games because we know the scoreboard is what matters.

Scoreboard!… Scoreboard!… Scoreboard!

In football, various statistics like time of possession, yardage, and turnovers provide insight into how a game is progressing. These stats are valuable for understanding the dynamics of the game, but at the end of the day, all that truly matters is the scoreboard and who scored more points. You don’t ask your uncle to pull up the yardage stats or who has more time of possession—you ask for the score. Financial markets also have a scoreboard….Price.

Price IS the Scoreboard

In financial markets, there are even more statistics and metrics people use to “help” analyze the health of a company or the broader economy. Valuations, economic data, earnings reports, and management discussions are all pieces of the puzzle used to make sense of what’s occurring. But just like in football, the score (price) is all that really matters.

Investors may have differing opinions and analyses about what the implications of these metrics may be in the future, but the only way to "win" in the market is for the price to move in the direction that aligns with one's position. It’s literally impossible to make money from any metric but price, just as it’s impossible to win a game of football without scoring more points than the opponent.

The beauty of the market is that we have the ability to analyze these scoreboards via technical analysis to gain insights into what really matters: scoring points (price movement). It’s important to focus on price action rather than getting caught up in other underlying details that do not change the fact that scores (prices) determine the outcome.

Only Points Win Games, and Only Price Pays

Football season is the best, and it also serves as a reminder that, in the end, all that matters is the final score. In the markets, that score is price. Only points win games, and only price pays.

Go Tigers!