"They make up shit all the time. It's hilarious. You wanna follow the media? Start a journal here. We'd all find it very entertaining." Exactly. Bloomberg energy headlines for example. Oil down today on expectations that OPEC won't keep to quotas. Next day, Oil up today on hints OPEC will enforce quotas. Useless.
Someone (whose name escapes me, I'm sorry) on this forum once posted that he could mimic the economic news by simply taking the first part of the statement of what happened, and then taking the end of a random Yahoo news post and it would be just as accurate. "Silver down 2% today on worries that Britney will leave Kevin."
You are exactly right. It is another myth. Yes sometimes they are wrong, sometimes they are right. I do not think one could build a successful system based on this theory that the media are always wrong. But people like those myths, and they see only what confirms their bias.
http://www.bloomberg.com/apps/news?pid=10000039&sid=azaARBnHx5kc&refer=columnist_baum http://www.arborresearch.com/biancoresearch/samples/Quick-02-06-06.htm More links. And, while it may be early, the euro has put in at least a temporary top since the Economist magazine cover last week.
If you were able to build a successful trading system based on those cover magazines, then congratulations. Those studies are biased, to start with. They want to prove a point and chose only those covers that do not work. By the way, I am also a contrarian and I believe that the cover stories are a good indicator of people' psychology of the moment. But I am not able to trade them.
Wait a sec. You can't just throw out, "If you were able to build a successful trading system based on those cover magazines, then congratulations. Those studies are biased, to start with. They want to prove a point and chose only those covers that do not work." Prove that they are biased studies. You are operating under your own bias. Show me something that says they do not work.
Sorry, I do not argue. I just think such studies do not have scientific evidences. Probably very difficult to perform. Which magazines, which cover, what timing, etc.. I definitely cannot and do not want to prove the studies are right/wrong. I am just saying I ignore them. They do not influence my trading decisions. That is all.