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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: Paul R. Drahota who wrote (43051)	7/24/2002 11:10:54 PM
From: JEB	Respond to of 50167

Everything in the universe is tied together. The market reacts to worldwide opinion and events. Ike is close to the middle east events and he is intimately familiar with the opinion, as well as the history which helped to form that opinion of the people in the middle east. Knowing some of their history helps gage their reaction to current events and what to expect as an outcome of that event. Historical market reaction to a given event tends to give a perspective on how the market will react to a current event. Researching and knowing everything about historical events can reveal the nuances found in each historical market event. Comparing these historical events for similarities to the current event and then isolating the most similar candidate can offer insight into the current market reaction and its magnitude. A few weeks ago I demonstrated this in my analysis on the XAU. If you saw those posts, I hope you did not believe that it was an estimate based on charting alone, ...that's only a part of my analysis. Historical perspective plays a key role in my decision as does the fundamentals of the sector and overall market. Contrary news and index indicators help as well. This is the reason I am soaking up all the information I can on the middle east because it plays a role in the opinion of the market and its future. It's not the whole picture but it is a part of it and therefore worthy of study.