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Pastimes : The Naked Truth - Big Kahuna a Myth

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To: BGR who wrote (70782)10/21/1999 10:41:00 AM
From: pater tenebrarum  Read Replies (1) of 86076
 
BGR, you are right about human emotions not occurring in a void. and the information they have to deal with nowadays, let's say the MAIN bit of information, is the extreme valuation of the market. the fact that stocks that miss earnings estimates by a few cents get 50% or worse haircuts in a day, proves how irrational the market's valuation is. in essence the people who have piled into the 40 or 50 stocks that hold the indices up are watching each other to see who blinks first and you'll see them rushing to the exit all at once at some point.
after that regression-to-the-mean event it will be time to buy again.

re: volatility, if not for volatility, how else would a short term trader make money? i agree it's not a healthy development overall, but one that can be profited from by nimble traders.
let me add that i have discarded day-trading for position trading which is more suitable for me. i know of others though who profitably trade the short term ripples, even though they are clearly a minority.
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