Re: Why are value investor types so rigidly opposed to TA?
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that technical trading shows no statistically significant risk-corrected out-of-sample forecasting power for almost all of the stock market indices."[5]
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Good point, but they may not have tested all indexes. If they found postive results for one you think they would say they found statistically significant results for XYZ index. At any rate the inability to quanitify TA techniques and test them make it difficult to prove that TA works.
The point about lottery winners is that just because you make money does not mean you have a market edge. Variance will produce gains for many people who do not necessarily have a market edge.
Anyone who is doing TA in a taxable account is paying significantly more taxes than a long term holder with equal gains. Its as though TA people where laying significant odds that their methods are better than long term value investing even though there is no proof its even equally as good.
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