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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Frank who wrote (42478)	4/22/2005 9:24:29 AM
From: gregor_us	Read Replies (2) \| Respond to of 206085

Frank: The PhD Behaviourist Psychologist Trader Buddy of Mine is having a field day with the current action in the markets. Just remember Frank, it takes humans time--sometimes lots of time--to process information. this is a classic example of what simon called 'bounded rationality' or what edwards called 'cognitive conservatism.' that is, under certain conditions, humans are excessively slow in processing and assimilating new information. There is absolultely no longer any question, that whether it's the historic changes in the crude futures strip--or even the Oil Rig Market--that the changes are simply too large for participants to have digested yet. That digestion is STILL in process, and will eventually culminate in small cycles, and, maybe an eventual spectacular moment of Recognition. (See Woodey Dorsey's site market semiotics.) This is an academic way of saying what you are saying, Frank. Yes, the analysts are recieving information today that has moved away so dramatically from their assumptions, that, it will take time for them to figure it out. The only question --and it's the same old question--going forward for energy stock investors is: will the market "recognize" the values in the stocks before the fundamentals change once again? We are moving WAY too fast here for most humans en masse to process the info. LP