| | Ohhh my goodness, Intel reports a profit warning, it's the end of the world. I know it's the stock market and you have to play the rules, but this is extremely ridiculous.
The other night for some reason I was switching between WWF and a financial show. And you know what, they are about the same. The same drama the same manipulation.
The stock market isn't like the weather which seems to just happen. The stock market goes up and down because people buy or sell. We control the market. If we all bought it would go up. If we all sold it would go down. It isn't a force with a mind of its own.
But the big problem is, nobody knows what the other guy is doing. So we sell, not because it really means a RHAT's ass if INTC issued a profit warning, but because we know everybody else will sell because of the profit warning.
(INTEL will recover today's loss within 3 weeks which will be proof this earnings warning doesn't really mean anything)
This is all a game. Stocks like art have an artificial valuation. We pretend to base it on earnings etc, but there are those anomalies in the Internet sector and in particular stocks like Amazon.
So what really moves stocks these days are us. Momentum. Just a game.
That being said, it's the game that is being played and if you want to win you have to follow the rules.
Just the other day I was thinking it would be wise to go to all cash around earnings season just to avoid surprises.
At any rate, I guess I'm just spouting about what I have no control over and that is the irrational irrationality of the market.
Maybe it's why the old timers say not to watch the daily fluctuations of the market.
And why the MTV generation loves the volatility and knows how to play it. |
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