In a recent comment by Dr Claus Te Wildt a respected Institutional advisor at Fidelity; Dr Te Wildt posits; "Based on the historical sample, you would expect the trading range for the S&P 500® Index (.SPX) to be about 50% from the cyclical high point to the low point. But the current range has been comparatively narrow at only about 20%, moving between a low of 1,022 on July 2, 2010, to a high of 1,259 on December 29, 2010.
Comment
Whether it was meant this way or not, our view is that This is a telling comment, about holistic sum values and the systemic rationing of price without respect to the underlying status of companies free float metrics which constitute the sum of supply within the index components.
A six month Trade range of 20% is essentially a sideways market. The range of any measurable index is subject to the accumulated interests of the index's primary contributors.Thereafter the interpretation of the complex, are subject to observation without constraints, where the skill of the observers coalesce to deduce whether the information projected is true, not true, or partly true.
We watch and monitor all data, without disconnecting from free float supply data we willfully accumulate. Supply data is rarely visited with respect to individual share parts, by our finance industry actual supply data represents an inconvenient truth.
In doing the business of market reporting, system wide constraints are to impose a limited awareness on market observers, using terms widely utilized as trade rational/generalizations, such as Overbought and Oversold.
The aforementioned terms are terms associated with supply, but are obfuscated by the process of production of information, so as not to report the conditions of real supply, but to circumvent supply data, and insert generalizations which only enable systemic intent to emerge.
In other times this process became known as sophistry......and those skilled in the practice, were simply sophists. |
