Well, I was replying to your post/quote, not his. Whether the markets are never wrong, or often wrong, there must be something you are comparing the market(s) to, to make that judgment. That is what I was referring to when I posted "with respect to what?".
If the market for example is heading either north or south and trend followers are all aboard following along, does that mean it will continue? If the market is zig zagging, one day up, next day down, which day is right? If the media say "market rose today due to stimulas package", then following day market goes down, was the stimulas package only good for a day or was perhaps the market wrong, or was the media wrong?
If the market were always right, then price shouldn't leap around so much. If the market can't make up its mind, how can it be right?
No, the stockmarket is never wrong. Remember it is big boys (hedge funds, mutual funds, banks, brokers) who have the deep pockets in the billions to buy stocks with. Legions of retail traders even if we put our monies together will have a hard time pushing stocks higher. There is not enough monies to do so. Exception, is the low float penny stocks which is why day traders love them. So, the big boys, move the stockmarket up and down on individual stocks and make lots of monies at the expense of dumb retail traders trying to teach the stockmarket who is boss? Now, retail traders by themselves cannot move the stockmarket. That is why the dumb retail traders get run over when they trade against the trend. Odds are heavily, against you yet, you choose to fight the trend?