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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: rllee who wrote (42797)	5/24/2011 9:34:41 PM
From: Shane M	Respond to of 78516

rllee, re: technicals: I'm reading Jack Schwager's book "Market Wizards" right now - just finished the chapter with his interview w/ famous trader Richard Dennis of the "turtle traders." One significant takeaway from his interview was that he said most of his systems don't necessarily work in the stock markets, but do better with many other markets, esp. commodities. They talked about why that would be - and Dennis said in his studies of the stock markets he finds that the basic nature of price movements in the stock market tend to be different - more random, and non-trending in most cases. When pressed Dennis attributed it to lack of information flow - or lack of meaningful new information in most stock price movement. He feels other tradable markets lend themselves more to trending because of a generally richer information flow. anyhow - I keep coming back to that statement - and we really do only get quarterly checkup w/ our companies in most cases, and beyond chit/chat press releases not much meaningful tends to happen in a quarter - makes me wonder if that's why most stock investors tend have long holding times - that the trends present in stocks have to play out over periods of multiple years - that meaningful datapoints and feedback loops occur much more slowly in most cases.