does anyone find the markets being a bit too irrational lately? The market has been doing the opposite of what it should be doing. let me explain...why did the market sell off on good employement data or any positive news, and why did the market rise when citibank announced more writedowns or any negative news. ...also: with BIDU, Barrons intervied money managers and they said the stock is overvalued, so it opens down, but it rises 5% in less than 2hrs off the open. the next day, it falls 8% in less than 2hrs off the open. The traders from institutions are selling on positive news, and buying on negative news - that's how they are making money (from retail traders). i keep reading posts about people making predictions based on their rational analysis, you might as well flip a coin to predict the markets direction. to make matters worse - the market is not trending, it going up and down everyday, most traders don't close soon enough or simply get stopped out. and what's with all those end of the hour rallies or sell-offs? i am sure most experienced traders make money when the market swings up and down all day. But if u are new to trading and trade according to the news or the fundamentals, be very careful.
Just remember 1999-2000. This time its massive liquidity creating asset bubbles across the globe. oil at 100 dollar at new lows massive write downs etc etc etc etc....
Only naive will trust news (unfortunately they are in the majority), media is one of manipulator's biggest edges, be it governments or extremely wealthy entities, also we have had media wars since intervention of newspapers in a way of propaganda. The more controlled a media is the more edge it becomes, Western media, which is relatively free of censorship in comparison to some other countries, unites at times of mass hysteria which is a very favourable event for entities that sell markets creating acts of terror for instance, then every single media source is reporting that event and by doing so creates mass hysteria in markets. Papers report links to terrorists, I tend to believe it is always about those that benefit from an event's outcome. It's always been about controlling/manipulating to ones advantage. One of UK's Home Office slogans is to create a "tolerant society", to tolerate thieves, rapists, immigrants that don't speak a word of English after 10 years in the country, or perhaps to tolerate governments actions?
Pisani has been being used by the smart money for years on the floor. He is an unbelievable vehicle to get dumb money leaning the wrong way and institutions and floor traders know this. Bob is the only one not in on the joke.