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Strategies & Market Trends : Ask Vendit Off-Topic Questions

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To: Walkingshadow who wrote (5016)2/17/2005 2:08:04 PM
From: rchlrvn  Read Replies (1) of 8752
 
Terry===

This analysis of general market behavior on Reuters a while back ties into what you and others are saying---

"When corporations report negative earnings surprises, the tendency to extrapolate the weakness into the future aggravates the perception of company error and sparks a sell-off in the stock.

"When the surprise is favorable, euphoric reaction to the traditional perception that good news will persist indefinitely wins out over concerns about company error.

"This is not a logical balance. Nevertheless, it is the modern stock market culture."

In this environment, even good news is often being seen as bad. That may be another warning sign.....
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