Are media biased?

Discussion in 'Trading' started by hajimow, Jul 24, 2005.

  1. I feel many times that the market should go down or up, the media a kind of tries to impose his own agenda in the other direction. I am talking specifically about Marketwatch or CNN financial. I see that they try to give a direction to the market with their pre-market bold titles. Does anyone else have got the same feeling?
  2. Being Human means being Biased(g)

  3. Ricter


    That's right. Let's just hope they're biased towards objectivity.
  4. Neodude


    I wonder if anyone has studied the correlation between market activity (i.e. S&P open) and financial news shows? I know many such studies have been done for Mags and News paper headlines, but it would be interesting if there is any peculiar effects generated by news shows. I guess Kramer's show would be an example.

    PS. I'm too lazy to do it myself. :)

  5. No but I have read of certain seemlying unconnected things fortelling the direction of the market by two weeks.

    One I read about in a trade maganzine while waiting to see a mortgage broker 3 years ago. This article say that the when internet sales picks up from consumer spending then 2 weeks later the markets would move up.

    A family friend imports granite from china to use in construction products here in America and also in Europe. He tells me that it is uncanny that when orders start picking up based on certain metrics he uses to run his business the stock market will make a good move up. He said that the lag is 2 weeks or so. The last time it happned was right before the last move down in the sp500 a few weeks ago.

    This guy is an ex cia type and is pretty good at connecting the dots. I told him to let me know next time he gets a single LOL

  6. Thats an interesting approach to predicting the market.
  7. tomcole


    You're talking about market perception versus reality. Its much easier to be negative and say world is ending, blah, blah, blah, than the S&P will close at 3000.

    Since most people only have average returns, by definition, the media plays to them. So, if you listen to the media, you, too, will have average expectations, leading to average returns.

    And how hard is it to be average?
  8. Neodude


    I don't think the idea is to follow what the media says, but instead to use the side effects it generates to one's own advantage. For example, lets say that news show X consistenty makes a prediction on Monday mornings about what the S&P will do during the day, this in turn causes a temporary reversal in the S&P prices during the first 20 mins of trading with a 65% probability, surely this is an exploitable edge?


  9. dis


    The media is being fed BS by bulls and bears alike.
  10. Let me know if your friend granite sales picks up again :)
    #10     Jul 25, 2005