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To: MulhollandDrive who wrote (208681)	12/10/2002 10:48:18 AM
From: GraceZ	Read Replies (2) \| Respond to of 436258

The market reacts instantaneously to all sorts of boogy men, rumors, news and lack of news. It also doesn't react to all kinds of news or reacts in opposition to bad news or good news. Mostly traders use news as an excuse or reason to act because they assume everyone else is reacting to news so they want to act accordingly. When the market or a stock doesn't react the way they think it should given the news they make assumptions that there is some force manipulating the market. Ask yourself honestly, did the announcement of the resignation make you want to buy stocks or sell them or just simply try to figure out what everyone else would do with the news? Maybe you figured you'd react contrary to the initial reaction, you'd take advantage of the initial reaction and sell instead of buy because it fits you prefered bias. So now we have a group here reacting to the original event, some buying, some selling....the buyers winning out initially providing opportunity for a second group who wants to counter that response. So net net what was the market's reaction? Up then down which will be followed by up...so what can one assess from the market movement about the resignation? The dollar was a sell off in need of an excuse. The resignation and subsequent appointment provided a neat little explanation yet anyone looking at the dollar chart a few days ago would have said that the dollar was looking like it was in sink or swim territory. So what it amounts to, the market uses news as an excuse to move where it needs to go anyway.