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Technology Stocks : AUTOHOME, Inc
ATHM 22.54-1.1%3:59 PM EST

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To: TREND1 who wrote (9559)5/19/1999 12:31:00 PM
From: ahhaha  Read Replies (1) of 29970
 
Didn't anybody tell you the that stock prices are randomly distributed? Studying noise gives you the only information available in noise: none.

DELL posted so-so earnings in a weakish market. It isn't very clever to conclude that the stock which is still rich would get hit, but the expectation isn't changed by those musings. The expectation of tomorrow's price is today's price.

To believe that any machine could predict next day's action or any future action is absurd. The best that can be done is to assess where there is a divergence between price and intrinsic market state which is determined by the elasticity of marginal demand/supply and net flow. This is a measurable quantity. Eventually the divergence will reverse and converge. You never know when that is. Thus such an approach is consistent with the unpredictability of stock prices, but it does tell you where to be if dynamic change happens to come your way.
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