<< Something I do not understand. Amazon releases two sets of earnings today. The
first is GAAP compliant, and shows a loss of over 90 cents.
The second one says "This is for informative purposes only, this is not the real
report. In fantasy land we actually only lost 40 cents. Remember this is for
informative purposes only, the other report is the real number."
Then every single analyst and every single media outlet WITHOUT EXCEPTION
reports the second one, even though it says right in the text- "FOR
INFORMATIVE PURPOSES ONLY"
I guess I'm just going insane, I can't figure out how this logic works.>>
Richard Ney used charts extensively. Ney was quick to point out that what is really being
measured in his charts is not the behavior of the masses in the marketplace, but the techniques
of the specialist in an individual stock as he maneuvers to solve short-term, intermediate-term,
and long-term inventory problems (1NEY, 259).
Ney points to the gaps in prices that develop when a specialist is trying to 'catch up' with the
market. These gaps, be they up or down, signal specialist intent (2Ney, 172).
"Investors assume that what happens in the economy or to the corporation in terms of earnings
or sales determines the trend of stock prices. ... The most misleading element in this type of
analysis is that it ignores the basic needs and motivations of the specialist system" (2Ney, 150).
For more on the media's role in this "shell game" read Richard Ney's books, or visit this site for a quick review:
w3.trib.com
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