#78 - Dave Keller, President and Chief Strategist at Sierra Alpha Research: Technical Analysis, Investor Behavior, and Navigating Market Rotations (recorded 07/29/26)

<p>In this episode of <em>The Bull of Wall Street</em>, Jim Worden and Talley Leger sit down with Dave Keller, President and Chief Strategist at Sierra Alpha Research, to explore how technical analysis, behavioral finance, fundamentals, and macroeconomic research can work together to improve investment decisions.</p><p> </p><p>Dave explains why he thinks technical analysis has gained broader acceptance across institutional investing and how charts can help investors navigate the gap between current prices and long-term fundamental value. The conversation examines the divergence between weakening technology leadership and improving market breadth, why relative strength remains one of Dave’s most valuable indicators, and how advisors can distinguish a short-term correction from a more meaningful change in trend.</p><p> </p><p>The group also discusses confirmation bias, emotional attachment to investments, risk management, AI’s role in investment research, and why consistent routines can help advisors avoid reactive decisions. </p><p><br></p><p><strong>Key Takeaways</strong></p><ul><li>Technical analysis can complement fundamental, macroeconomic, quantitative, and behavioral research.</li><li>Relative strength can help identify leadership as capital rotates between sectors and investment themes.</li><li>Strong market breadth may create opportunities even when capitalization-weighted indexes appear weak.</li><li>Technical analysis can be especially valuable as a risk-management and sell-discipline tool.</li><li>AI may improve research efficiency, but investors still need judgment, context, and a disciplined process.</li><li>Reviewing markets across multiple timeframes could reduce overreaction to short-term volatility.</li></ul><p><br></p><p><strong>Chapters</strong></p><p><strong>01:39</strong> – Why technical analysis has gained institutional acceptance</p><p><strong>06:49</strong> – Reconciling positive fundamentals with deteriorating technicals</p><p><strong>10:31</strong> – Identifying corrections versus broken trends</p><p><strong>15:16</strong> – Combining fundamental, technical, macro, and behavioral research</p><p><strong>18:47</strong> – Confirmation bias and the endowment effect</p><p><strong>22:28</strong> – Sentiment, market leadership, and active management</p><p><strong>28:41</strong> – Price corrections versus time corrections</p><p><strong>30:34</strong> – Market breadth versus index performance</p><p><strong>33:36</strong> – Technical analysi