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Strategies & Market Trends : Playing the QQQQ with Terry and friends.

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To: Don Green who wrote (4785)5/19/2009 3:10:14 AM
From: Walkingshadow   of 4814
 
<<IMHO the only thing that hasn't changed is human emotions and how the affect the market. >>

True enough Don.

But these---especially fear and greed----are the major determinants of market behavior, when combined with the inherent herding instincts that humans exhibit in markets.

These are the fundamental forces that drive every market, if you ask me, regardless of where the market is, what is being traded, the era that the market is trading in, whether they install uptick (or downtick) rules, or any external attempts to regulate the market (e.g., China's limits on how far a stock can move in a day----that sure did little or nothing to prevent an absurdly inflated upside bubble that the Chinese will be paying for over the next 30 years or so).

Get a handle on these things, and you don't need any other information in any market, and you certainly don't need news or opining pundits or pump and dump analysts trying to set you up to be left holding the bag or obnoxious screaming idiot sweathogs like Cramer.

Since these fundamental market forces are typically pretty irrational, then it follows that rational market predictions and modeling and "stories" and so forth are hopelessly misguided, if not outright oxymorons.

Terry
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