Each day we here from mouthpieces of the systems of the market; about the characteristics which should mark stock performance. Generally, growth is the key catalyst for rewarding stock price appreciation. Growth comes organically form increasing sales and profit performance, or it comes from a combination of acquisitions which are arranged to augment R&D and or market share.
In my world Stock price is an artifact of prevailing systems intent. This is fully accounted for by metrics falling under one of four primary current trend states accumulation, distribution, obfuscation or neutral.
SONIC is living proof that stock prices are artifacts of prevailing systems intent, and not a function of any other set of variables. In the coming years more and more market participants will move to this understanding.
As program trading alogrithms paint the tape to system goals, volatility becomes a function of price maintenance, where news events, fundamentals can be arranged for systematic climaxes to occur. These changes are no different than the fast changes which occur in a football game when a turnover happens, with each turnover each team must quickly transitions from offense to defense or vice versa.
As investors, our primary goal is to understand forward demand and preposition our assets along timelines which anticipate fast transitions between game states.
When a stock is locked into a trading range artificially, your recognition of the current state as Obfuscation, allows you to stalk the time line of the prevailing systems. In most cases you will note that as the obfuscation state ages, the recognition of the forward demand metrics Investors want to own are further validated by key indicators as manifest by supply and demand.
Trade metrics support system goals.
When fundamentals are validating in opposition to system goals, the anergy of the weight of the prevailing program begins to take on cost metrics which forecast a transition state. Its the transition states that provide investors the most significant gains, monitor the age, strength, maintenance costs and fundamentals, because these are clearly the facts being portrayed on a given stocks scoreboard. |
