Are fundamentalists now in play, maybe upsetting the balance of the technician, the numerous head fakes ecnountered for either the short or long intended with huge swings intraday not giving value to other frame of reference...who's leading who?...as the technician says, the noise is in the the charts...who's the cause and effect?...
Price moves because of many players, all with different time frames, emotions, opinions. Even in a positive market, some are selling while at the same time others are buying. What made one person sell and another buy? One was afraid that prices would be higher later and one had the opposite fears. Another felt a sell off was 'irrational and overdone' yet another saw a sell off as impending doom and sold all.
Thankfully the world is peopled with different folks otherwise it might be hard to trade or invest if we all came to the same conclusion at the same time.
Thanks to these and other differences, I have no fear that charting the market will cease to work, as its the only objective means of gauging who's leading at any given point. Sometimes neither lead... those are key places to watch.
. I will contend the folks you are reaching are of the minority,,,and from those only a minority will survive...
I don't disagree at all. Because people are different, some will not be able to shed their emotion. Some will not do the simple work requried to learn. Some will not believe it can work. etc. And others will find another method that works (or doesn't work) for them.
I've got technical analysis books from the 30's where the question "won't it stop working when everyone knows the methods" is asked... well it hasn't stopped working yet. All those human issues keep things a rolling along.
gotta run, have a nice Thanksgiving day... |
