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Strategies & Market Trends : Ask Vendit Off-Topic Questions -- Ignore unavailable to you. Want to Upgrade?


To: Walkingshadow who wrote (3528)1/5/2005 3:12:39 AM
From: sandintoes  Respond to of 8752
 
Great post, thanks.

Looking at the dollar chart was shocking, I thought it was suppose to be going down hill. That's the way CNBC has been portraying it.."Our dollar is weaker again today..etc."

Market perceptions are subjective, not necessarily rational, and may at times (but not indefinitely) run totally counter to "external influences." Also, you have to consider that the market does not always view "outside influences" the same at any particular point in time. Instead, the market tends to focus on particular things, then that focus switches to something else that might have been relatively ignored for a while. So the market is not an unbiased processor of all input---rather, the market selectively processes incoming data in a way that is skewed by the particular biases at the time. By that, I mean sentiment.

That would explain why some stocks go up on good earnings while others crash as soon as great earnings are announced.

You have to be an economist to figure all this out...<<GG>>